---
title: "Tsingtao Brewery's 2018 Annual Report Reveals the Secret Behind Its 15-Year Reign as the Most Admired Beer Brand"
description: "On the evening of March 28, Tsingtao Brewery released its 2018 annual results. During the reporting period, beer sales volume reached 8.03 million kiloliters, up 0.8% year-on-year; revenue was approximately RMB 26.575 billion, up 1.13% (or 5.15% on a comparable basis due to the adoption of new revenue standards); net profit attributable to shareholders was approximately RMB 1.422 billion, up 12.60%, showing a healthy trend of profit growth outpacing revenue growth, which outpaced sales volume growth."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2019-03-29"
language: "en"
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# Tsingtao Brewery's 2018 Annual Report Reveals the Secret Behind Its 15-Year Reign as the Most Admired Beer Brand

> On the evening of March 28, Tsingtao Brewery released its 2018 annual results. During the reporting period, beer sales volume reached 8.03 million kiloliters, up 0.8% year-on-year; revenue was approximately RMB 26.575 billion, up 1.13% (or 5.15% on a comparable basis due to the adoption of new revenue standards); net profit attributable to shareholders was approximately RMB 1.422 billion, up 12.60%, showing a healthy trend of profit growth outpacing revenue growth, which outpaced sales volume growth.

**On the evening of March 28, Tsingtao Brewery released its 2018 annual results. During the reporting period, beer sales volume reached 8.03 million kiloliters, up 0.8% year-on-year; revenue was approximately RMB 26.575 billion, up 1.13%** (Note: Due to the adoption of new revenue standards during the reporting period, revenue on a comparable basis increased by 5.15% year-on-year); **net profit attributable to shareholders of the listed company was approximately RMB 1.422 billion, up 12.60%, showing a healthy development trend with profit growth higher than revenue growth, and revenue growth higher than sales volume growth.**
**In 2018, Tsingtao Brewery maintained its position as the No.1 brand in China's beer industry with a brand value of RMB 145.575 billion** (as released by the World Brand Lab). Tsingtao Brewery's sub-brands Laoshan Beer, Hans Beer, and the Tsingtao Beer Museum also made the list with values of RMB 27.258 billion, RMB 17.036 billion, and RMB 10.589 billion respectively, showcasing the brand's "ecosystem effect."

**01 Product Structure: "Transformation and Upgrading" Towards Mid-to-High-End**
Since the second half of 2014, China's beer industry has shown a trend of overcapacity and entered a downward channel, and Tsingtao Brewery's performance also hit a turning point. In the era of stock competition, for enterprises, the positive ways to improve profitability are nothing more than two: one is to increase market share and expand territory; the other is to optimize product structure and increase net profit margin.
Facing the new trend of consumption structure upgrading in the beer market, Tsingtao Brewery established the "Blue Army Innovation Business Unit," whose main task is to compete with the mainstream "Red Army" in new products, new channels, etc., and launch things that the "Red Army" does not have, so as to attract consumers. In recent years, it has developed and launched various types such as "Classic 1903, Whole Wheat White Beer, Raw Draft, Pilsner, Tsingtao Beer IPA." At the same time, the company also accelerated the transformation and upgrading to high value-added products represented by canned beer and craft beer.
In 2018, the main brand Tsingtao Beer achieved sales of 3.914 million kiloliters, up 3.97% year-on-year. Among them, high-end products such as "August, Hongyun Dangtou, Classic 1903, Pure Draft Beer" achieved sales of 1.733 million kiloliters, up 5.98%, continuing to maintain its competitive advantage in the mid-to-high-end beer market in China.

**02 Channel Innovation: Fully Embracing the Internet**
In 2018, Tsingtao Brewery continued to promote and improve the "key account + micro-operation" marketing model, conducting product sales and market management by market region, organizing development and maintenance of regional market sales networks through business branches at all levels including sales branches, provincial regions, and provincial offices, and coordinating with regional market distributors to complete terminal market sales. It actively cultivated strategic distributors and improved business synergy with distributors through measures such as distributor business training, market planning, and promotional support.
In addition, Tsingtao Brewery also innovated its marketing model, built an "Internet+" channel system, established a three-dimensional e-commerce channel system of official flagship stores + official mall + online retailers + distribution exclusive stores, built its own e-commerce channels, and launched mobile "Tsingtao Beer WeChat Mall" and "APP Tsingtao Express Purchase," meeting the purchase needs and consumption experience of consumers in the Internet era through multiple channels.
During the 11.11 shopping festival, Tsingtao Brewery launched the "Decade Friendship" Tmall 11.11 10th anniversary customized product. On that day, Tsingtao Brewery increased by 60% year-on-year, and in just 10 hours exceeded the total sales of the same period the previous day, setting a new record. "Decade Friendship" once became a hot online and offline topic.

**03 Technological Innovation: Adhering to the Spirit of Craftsmanship**
Against the backdrop of consumption upgrading, China's beer industry is undergoing structural changes in consumption. In the past two years, differentiated, low-alcohol, high-quality beer has gradually gained favor among consumers. Taking this as an opportunity, craft beer quickly spread from around the world to China.
A large number of imported (craft) beer brands have entered the Chinese market. The concept of healthy drinking, from "good to drink" to "drink good beer," and from "gulping" to "sipping," has begun to prevail. This has also made innovative beers advocating the "craft" concept a new force in the beer industry, with many beer companies investing in R&D in this field and continuously launching new categories.
Tsingtao Brewery has the only "State Key Laboratory of Beer Biological Fermentation Engineering" in China's brewing industry, and uses "beer flavor spectrum technology" to digitally interpret flavor substances, aroma substances, and taste substances. Whole Wheat White Beer has undergone more than 4,000 tests, analyses, and tastings. Combined with the industry-leading professional tasting team, it has identified the elements of good beer.
Four years ago, light beer dominated the market, but today, pure draft, white beer, dark beer, Pilsner, and many other varieties continue to appear on our tables; producing good products that consumers like and that meet market demand is the original intention and goal of Tsingtao Brewery people in adhering to the spirit of craftsmanship.

**04 Brand Influence: Creating a "Chinese Business Card"**
According to the "Research Report on Chinese Brands and China's National Image" released by the China Foreign Languages Publishing Administration, Tsingtao Beer's awareness exceeds 90% in some countries, especially higher in developed countries in Europe and America. The survey "Chinese Companies in the Eyes of Foreigners" shows that Tsingtao Beer ranks first in "product usage rate" in the United States, the United Kingdom, Australia, Japan, and South Korea.
In addition to the lively Qingdao International Beer Festival, Tsingtao Brewery actively expands channels to communicate and interact with young people in brand promotion activities. Sports events, music events, IP customized wine, Tsingtao Brewery "plays" with great enthusiasm. On February 14 this year, at New York Fashion Week China Day, Tsingtao Brewery also staged a fashionable cross-border Chinese trend show, showing its "trend" momentum. In December 2018, Tsingtao Brewery once again joined hands with the Olympics, becoming an official sponsor of the Beijing 2022 Winter Olympics and Winter Paralympics after being an official sponsor of the Beijing 2008 Olympics.
The high value of Tsingtao Brewery's brand is inseparable from its historical brand accumulation, and of course, it is also inseparable from its perfect channel network construction, which is the flank of Tsingtao Brewery's development. But there is another reason why Chinese people respect Tsingtao Brewery especially: it is a cultural business card of China and also enjoys a good reputation in the world.
Tsingtao Beer products have successively won the Gold Award at the "World Beer Championship" and the "2018 European Beer Star" award in the international market.
In the international market, through special market promotions such as Chinese New Year and Mid-Autumn Festival activities, strengthening consumer experience interaction, and holding the first "Tsingtao Mini Beer Festival" in the Americas, Europe, Oceania, and the Asia-Pacific region, it continuously optimizes the overseas market channel structure, and with the help of global mainstream social media platforms, enhances brand communication and promotion through online and offline interactive activities, providing overseas consumers with the best brand and product experience. In 2018, Tsingtao Beer products were sold to more than 100 countries and regions around the world.

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