--- title: "Tsingtao's Sun Mingbo: Consumers Used to Compete in Drinking Beer, Now They Savor It" description: "At the first China Time-honored Brand Expo, Tsingtao Brewery's chairman disclosed a market share of 18.8%. The company's half-year report showed increases in sales volume, revenue, and net profit, driven by high-end product innovation and overseas market growth." author: "New Distribution" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2017-09-04" language: "en" canonical: "https://xinjignxiao.com/en/articles/tsingtao-s-sun-mingbo-consumers-used-to-compete-in-drinking-beer-now-the-a2cd714c/" markdown: "https://xinjignxiao.com/en/articles/tsingtao-s-sun-mingbo-consumers-used-to-compete-in-drinking-beer-now-the-a2cd714c.md" original_source: "https://mp.weixin.qq.com/s/Hpgq6MSXcTIgMHxRVTeTCQ" translation: "https://xinjignxiao.com/zh/articles/%E9%9D%92%E5%95%A4%E5%AD%99%E6%98%8E%E6%B3%A2-%E4%BB%A5%E5%89%8D%E6%B6%88%E8%B4%B9%E8%80%85%E5%96%9D%E5%95%A4%E9%85%92%E6%98%AF%E6%8B%BC%E9%85%92-%E7%8E%B0%E5%9C%A8%E6%98%AF%E5%93%81%E9%85%92-a2cd714c.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/tsingtao-s-sun-mingbo-consumers-used-to-compete-in-drinking-beer-now-the-a2cd714c/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Tsingtao's Sun Mingbo: Consumers Used to Compete in Drinking Beer, Now They Savor It > At the first China Time-honored Brand Expo, Tsingtao Brewery's chairman disclosed a market share of 18.8%. The company's half-year report showed increases in sales volume, revenue, and net profit, driven by high-end product innovation and overseas market growth. Click the image for details "Tsingtao Brewery currently holds an 18.8% market share." At the first China Time-honored Brand Expo held on September 1, the chairman of Tsingtao Brewery Co., Ltd. disclosed the latest market share data. Just on the evening of August 30, Tsingtao Brewery's half-year report showed that in the first half of this year, Tsingtao Brewery achieved beer sales of 4.53 million kiloliters, a year-on-year increase of 2%; operating revenue of 15.063 billion yuan, up 2.15% year-on-year; and net profit attributable to shareholders of the listed company of 1.148 billion yuan, up 7.43% year-on-year. This is also the first time since 2015 that Tsingtao Brewery's half-year report has achieved positive growth, with a trend of increases in revenue, profit, and sales volume. Affected by domestic consumption upgrades and the impact of mid-to-high-end imported beer brands, China's beer industry has undergone three years of deep adjustment, and domestic beer production has also declined consecutively. **"Previously, consumers drank beer to compete in quantity; now they savor it, choosing beer that suits their taste needs."** At the forum of the first China Time-honored Brand Expo, Sun Mingbo shared the huge changes in consumption culture, sales models, and production methods in the domestic beer industry. "In terms of sales models, it used to be that channels were king; now consumers have more power. So in production, there is a shift from large-scale, standardized production to personalized, customized, and small-variety production." Market analysts believe that Tsingtao Brewery's counter-trend performance is mainly due to its continuous development and innovation of mid-to-high-end products, which further increased the market share and gross margin of these products. Secondly, the significant growth in Tsingtao Brewery's overseas market also drove its performance growth. "In the 2017 half-year report, the overall ton price of the company's beer products was 3,296 yuan/ton, up 10 yuan year-on-year, and up 36 yuan from the end of last year. The company accelerated its transformation to high value-added products such as canned beer and craft beer, boosting profitability. In the future, product structure upgrade remains the main trend." A research report from CITIC Securities believes that part of Tsingtao Brewery's performance growth is due to increased sales of high-end products. Tsingtao Brewery's 2017 half-year report shows that sales of high-end products represented by "Augustus, Hongyun Dangtou, Classic 1903, and Pure Draft Beer" reached 900,000 kiloliters, a slight year-on-year increase of 1.12%. By region, domestic revenue in North China and Shandong grew faster, by 6.8% and 6.6%, respectively. **The overseas market is also a strategic focus for Tsingtao Brewery.** Tsingtao Brewery's financial report shows that overseas sales volume increased by 14% year-on-year, and revenue increased by 17.25%. "Tsingtao Beer has been sold to more than 100 countries worldwide and is the most exported Chinese beer brand," said Sun Mingbo. With the economic recovery, terminal consumption has also continued to pick up. However, the impact of imported beer on the domestic beer market should not be underestimated. Data from the Wine and Spirits Importers and Exporters Association shows that from January to July 2017, the volume and value of beer imports rose slightly, with imports of 400 million liters, up 6.9% year-on-year, and import value of $410 million, up 6.8% year-on-year. "Imported beer cannot overturn China's beer market. We believe that Chinese beer companies, including Tsingtao Brewery and others, will support the major share of China's beer market." In an interview with reporters, Sun Mingbo appeared quite confident. He believes that "China's beer development level, whether in terms of technology, equipment, or personnel quality, has reached the international advanced level. After repeated comparisons, consumers will choose the flavors they like. This is the direction of consumer demand upgrade and also the direction of the beer industry's development. We are very confident about this." 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Long press the QR code below or click "Read Original" to register. Early bird tickets before September 15 enjoy a 30% discount! Add friend with note "Conference Registration" Click the links below to review the highlights of the first and second FMCG + Internet conferences: 2016 "FMCG + Internet" Summit Forum 2017 (Second) China FMCG + Internet Conference Click the links below to review the highlights of the first and second FMCG + Internet conferences: [2016 "FMCG + Internet" Summit Forum]() -END- --- ## Copyright and AI use This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL. Contact: zhaobo258@gmail.com · +86 158 5481 7671