2020 was supposed to be a big year for sports, but with the global spread of the pandemic, the Olympics, the European Championship, and NBA events were postponed or canceled, plunging FMCG industries that rely on offline consumption into a vortex of uncertainty. How to 'survive the ordeal' has been the challenge facing these industries over the past three months. According to analysis by Sinolink Securities Research Institute, under optimistic, neutral, and pessimistic scenarios, beer production growth in 2020 would be 0%, -1.5%, and -3.4% respectively. Facing the impact, the emergency response of global beer giant Budweiser Group in the Chinese market has provided a reference for teams in other countries deeply affected by the pandemic, and also offers a window to observe the possibilities for industry development. -01- 'Crisis' vs. 'Opportunity' The closer to the consumer market, the more companies need to respond quickly to any changes. With the sudden outbreak of COVID-19, the FMCG sector bore the brunt, and the beer industry clearly cooled down. As CEO and Co-Chairman of Budweiser APAC and President of Budweiser APAC, Jan Craps experienced the beer industry's anti-epidemic battlefield in China firsthand. On April 23 in Shanghai, he shared his story and insights from this period. The source of rapid response to change is rapid decision-making. It is understood that on January 26, the third day after Wuhan was locked down, Budweiser APAC established a 'Crisis Management Team' led by senior executives from various departments, outlining a three-phase anti-epidemic plan: 7 days, 30 days, and 100 days. The '7-day plan' was to initiate emergency response measures. Budweiser China has always insisted on putting the safety and health of employees first, and from a social responsibility perspective, considering the community. In Wuhan, the epicenter of the epidemic, Budweiser prepared masks and disinfectant for every Wuhan employee, delivered directly to their homes, and also thoughtfully provided psychological counseling services. For the frontline of the fight against the epidemic, starting from January 30, Budweiser China donated a total of 11 million yuan in cash and materials to combat the epidemic, including cash, medical supplies, and emergency purified water. As the epidemic gradually improved, Budweiser China began to resume work, implementing necessary health and safety protection measures in factories and offices. After strict prevention and control, what pleased Jan Craps was that among nearly 24,000 employees of Budweiser China, the number of infections was zero. Budweiser's breweries in China have resumed production one after another. The collective strength of the joint fight against the epidemic comes from the efforts of different groups. From volunteering to go to the hardest-hit areas, risking their own lives to protect patients in need, Jan Craps said he truly felt a unique spirit from the medical staff. Budweiser employees also fought on the front lines, supporting the company's business partners and customers, striving to provide everyone with the best ways to get through the difficulties. During the epidemic, as many offline sales channels were closed, some distributors went into communities to sell, proactively discovering new sales opportunities and bringing convenience to community residents. Jan Craps said these are the people he wants to thank most, 'Thank them for their contributions.' Through this epidemic, Jan Craps learned a Chinese word: 'crisis.' 'Crisis' represents the symbiosis and transformation of 'danger' (Crisis) and 'opportunity' (Opportunity). We must see the 'opportunity' within the 'danger.' As a multinational company, Budweiser APAC's experience in China has also been borrowed by other countries globally. In the weekly internal meetings of the global group, executives from other markets are very willing to listen to experience sharing from China, including how to prevent and control the epidemic and how to adjust to the business impact. -02- Online 'Self-Rescue' The outbreak continued to impact the beer business. The nightlife channel almost ceased activities, and restaurant activities were also very limited. Data shows that compared with the same period in 2019, Budweiser APAC's revenue decreased by approximately $285 million. Online sales became a turning point in the difficult situation, and beer was no exception. Home consumption began to become the main scenario for beer sales. In addition to 'virtual toasts,' many people would order a few bottles of beer with their takeout, and beer was also used in cooking. The 'stay-at-home economy' triggered demand for more consumption scenarios. Budweiser hopes to further create new scenarios for lifestyle and spiritual entertainment. Budweiser's '30-day plan' in China was to redevelop the business plan, adjust the way products are launched, and allocate resources for sales channels. Among them, Budweiser Beer held an online electronic music festival with a new theme every week, inviting different DJs to play online, creating a 'cloud rave' atmosphere. The online music festival on April 20 was somewhat special. At 8 p.m., the long-docked 'Zhiyin' ship in Wuhan sounded its whistle and set sail, cruising down the river. Unlike usual, the words 'Wuhan is brilliant' projected on the deck heralded that this night cruise would kick off an electronic music feast. This was actually a 'cloud live broadcast' event hosted by Budweiser Beer, attracting tens of thousands of viewers across the country to 'cloud rave' online. Another brand under the company, Harbin Beer, chose a theme marketing model related to esports. Livestream selling was also booming. On the evening of April 22, Hoegaarden Rosé beer appeared in Li Jiaqi's livestream room. In addition to celebrity endorsements, Budweiser also observed that KOC (Key Opinion Consumer) selling was also very effective. They encouraged employees to participate because employees have feelings for the company, and their product presentations are often more detailed and moving, making it easier to stimulate sales. At the same time, Budweiser cooperated with JD.com, using JD's channels to bring beer to communities. Jan Craps said, 'Using multiple marketing methods and sales channels can establish closer interaction between us and consumers.' From SARS to COVID-19, epidemics have increased the importance of digital construction. More than a year ago, Budweiser APAC established a new team focused on strategy and digital transformation, recruiting many PhDs, even those with double doctorates, from fields such as statistics, machine learning, and artificial intelligence, capable of providing higher-level analysis of all information captured by big data systems. This team is very sensitive to market changes. During the epidemic, they used automatically captured public data to conduct detailed analysis of trends in various provinces and industries, and used third-party data to obtain information on return-to-work conditions in various cities. Through data science, they helped the company understand the market, adjust market strategies, and played a unique role in the process of redeveloping the business plan. -03- New 'Beer' Power After this epidemic, Jan Craps is more convinced of one thing: employees must be put first. The team's sense of ownership and resilience and meticulousness demonstrated during the crisis gave the company enough confidence to become stronger in the future. In addition to the human factor, the combination of a high-quality brand portfolio and strong distributor partners can help the company successfully 'survive the ordeal.' Now, more and more restaurants are reopening every week, but nightlife remains inactive. For consumer goods companies, there is still a long way to go for recovery. For beer companies, the most important summer marketing season is coming. In this first summer after Budweiser APAC's listing, the focus of the '100-day plan' is to be prepared and regroup. For example, Corona has planned a 'travel' theme throughout, symbolizing people returning to the travel scenes they yearn for. Harbin Beer will launch a brand-new, refreshing visual design, and Budweiser Beer will create a series of themes to celebrate the scene of reuniting and raising a glass of beer to celebrate. Mr. Jan Craps, CEO and Co-Chairman of Budweiser APAC and President of APAC, is confident about this summer. Jan Craps said that the company's business has been gradually recovering recently. The major brands under Budweiser China have also prepared summer marketing plans. A better world is a healthier and safer world. We look forward to the moment of reuniting with family and friends, raising a glass of Budweiser to celebrate warmly (Source: Southern Weekly). Tips will be paid 400-2000 yuan once adopted.