Click to read the original article for details On the morning of July 22, the signing ceremony for the cooperation project between China Resources Snow Breweries and Zhangqiu District, Jinan, Shandong was held. According to internal sources at Snow, the project has a total investment of no less than 1.3 billion yuan, a building scale of 100,000 square meters, cumulative tax payments of no less than 2 billion yuan within 8 years, and an initial annual production capacity of 700,000 kiloliters, demonstrating strong driving force and high economic contribution. Attendees at the event included Hou Xiaohai, Party Secretary and General Manager of China Resources Snow Breweries (China) Investment Co., Ltd., along with relevant responsible persons from Snow Enterprises; Wang Hongzhi, Member of the Standing Committee of the Jinan Municipal Party Committee, Deputy Secretary of the Party Leadership Group of the Municipal Government, and Director of the Management Committee of Jinan High-tech Zone; and leaders from Zhangqiu District and Mingshui Economic and Technological Development Zone, including Ma Baoling, Huang Bo, Wang Shiqiang, Wang Yong, and Dong Peng. As introduced by the Zhangqiu District Party Secretary in his speech at the meeting, Zhangqiu is the discovery and naming site of Longshan Culture and an important engine of the city's eastern strengthening strategy. In the first half of 2021, local public budget revenue reached 4.80 billion yuan, an increase of 23.29%, with a two-year average growth of 12.04%. Total industrial output value reached 78.1 billion yuan, an increase of 25.4%, and industrial added value grew by 16%, with two-year average growth rates of 16.2% and 10%, respectively. Fixed asset investment completed was 25.7 billion yuan, an increase of 9.1%. The regional GDP is expected to grow by 13%, with a two-year average growth of 5.7%. China Resources Snow Breweries, as a leader in the domestic beer industry with a market share exceeding 30%, boasts a high-end brand matrix of "Chinese brands + international brands," including SuperX, Mars Green, Craftsmanship, Hualian, Heineken, Sol, Red Horse, and Tiger Beer. The signing of this project marks the beginning of sincere cooperation and mutual benefit. At the meeting, China Resources Snow and Zhangqiu jointly expressed, "We look forward to the nourishment of Zhangqiu's spring water, enabling China Resources Snow Breweries to produce higher-quality products, continue to 'Brave the World,' and move faster towards the goal of becoming a 'world-class beer enterprise.'" In fact, from 2017 to 2019, to address the issue of "shedding burdens," China Resources Snow Breweries closed 25 factories within three years, reduced its workforce by 29,000 employees, and carried out internal management reforms. However, industry insiders indicate that the Shandong market, as China's largest beer market, has a market size of approximately 4 million kiloliters per year, accounting for about 13% of China's total beer market. Facing such a vast market, Snow, as the largest brand in China's beer market, has a strong strategic impulse to capture Shandong. Additionally, against the backdrop of national production capacity re-planning and significant capacity reduction, Snow Breweries still decided to build a production facility with international standards in North China. Coinciding with Jinan's policy environment that strongly advocates the transformation of old and new growth drivers, optimizing the industrial layout, and strengthening the real economy, and through detailed and efficient communication and negotiation with Zhangqiu and the Mingshui National Economic and Technological Development Zone, the project ultimately landed in the Mingshui National Economic and Technological Development Zone. Regarding the successful signing of the agreement between China Resources Snow Breweries and the Zhangqiu District Government to build a million-ton brewery, Hou Xiaohai, Party Secretary and General Manager of China Resources Snow Breweries (China) Investment Co., Ltd., expressed gratitude in his final speech for the continuous support from Jinan City and Zhangqiu District. He stated that in the next step, they will carry forward the spirit of Snow Breweries' perseverance and excellence, adhere to high standards and high quality in the construction of the new plant, and after official operation, provide consumers with the highest quality products and services, making greater contributions to the economic and social development of Jinan City and Zhangqiu District. Beer marketing expert Mr. Fang Gang's comments: 1. Snow's move into Shandong is likely to optimize production capacity. In the future, it may close the Binzhou and Liaocheng Snow factories and concentrate production capacity in the Jinan plant. This move is highly likely for capacity optimization, and its direct impact on the market will need to be observed gradually. 2. Snow Breweries currently holds about 20% market share in Shandong. The total production of Snow beer in the Shandong market is estimated to exceed 500,000 tons. It has already formed multiple advantageous markets and base markets in some counties and cities, showing signs of taking root. 3. After the establishment of the Snow Jinan plant, it cannot be ruled out that a second battle in the Shandong beer market will occur in Jinan. This will put some pressure on Tsingtao Brewery, which regards Shandong as its base market! PS: From August 24 to 26, 2021, the 2021 (4th) China FMCG Conference hosted by "New Distribution" will be held in Shanghai. 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