Snow beer, senseless epidemic, decisive high-end quality development

2022-06-05 0 By

Now, in this mutually beneficial and win-win ecosystem, Snow Beer works with its partners to target the industrial and technological frontier, to carry out research on the pain points of consumer demand and difficulties in the development of the industry, and to continue to solve the key technical problems that restrict the development of the beer industry.Snow Beer has become the largest beer enterprise in China in terms of sales volume. Without the support of strong corporate culture, it is impossible for the organization to change.Therefore, cultural remolding is an important strategy to support the reinvention of Snow Beer.Hou Xiaohai, chairman and general manager of China Resources Snow Beer (China) Co., LTD., said that the epidemic has restrained the high-end growth of beer, but the impact of the epidemic this year is expected to be “no worse than last year”, so the development of the beer industry in 2022 remains cautiously optimistic.The announcement shows that China Resources Beer achieved revenue of 33.39 billion yuan, up 6.2% year on year, and net profit of 4.59 billion yuan, up 119.1% year on year. After deducting after-tax compensation income of 1.3 billion yuan from land transfer, net profit of 2.09 billion yuan in the same period of last year still has a significant increase.China Business News reporters noted that the growth of China Resources Beer mainly comes from the continued high-end. In 2021, the sales volume of China Resources beer sub-high-end and above beer reached 1.866 million liters, up 27.8% year on year, and the sales proportion of sub-high-end and above beer products also increased from 11.5% in 2019 to 16.9% in 2021.Gross profit per kiloliter also increased by 10.7% compared to 2019.Several beer companies that announced their performance in the same period also showed a trend of accelerating high-end.”Beer is going upscale faster than expected.”Hou said China Resources Beer had originally expected to sell more than 2 million tons of sub-premium products in 2025, but current data suggest the target may be reached earlier this year.In 2021, the middle and high-end brands of China Resources Beer, such as Mars Green and SuperX, achieved a growth of more than 40%, despite the impact of domestic epidemic on beer consumption in the second half of 2021, the closure of some night performances and restaurants, and the suppression of beer consumption.What is the impact of rising costs and the pandemic?Previously, a person in charge of a beer enterprise told a reporter from China Business News that the cost of beer production will increase by about 25% in 2021, which will also affect the performance of beer enterprises.In the fourth quarter of 2021, although the revenue of Pearl River Beer maintained growth, its net profit was only 17 million yuan, down 73% year-on-year, which was the biggest drop in the fourth quarter of nearly four years.In addition to upgrading its product structure, China Resources Beer also adjusted the prices of some products from the second half of 2021, with the overall average selling price rising by 6.6% compared with 2020, to offset the cost increase caused by rising raw material and packaging prices, according to the earnings report.Hou Xiaohai said that from the second half of 2021, the cost of beer raw materials and packaging has risen rapidly. Through the overall price increase of The Series in September 2021, the pressure of rising cost has been better released, and the growth of middle and high-end product sales has also digested part of the rising cost.2022 although the uncertainty brought the cost of raw materials to rise further, but through the lock ahead of purchasing cost and product structure upgrade, most of the raw material price pressure has been digested, 2022 huarun beer price is no longer “options”, may only in regional and local products to price adjustment.Hou Xiaohai, chairman of the board, said in the big changes, big customers played an important role.In recent years, the total number of big customers has been increasing, and it has gradually become the core force of the high-end decisive battle of Snow beer.”Key customers are the creators, contributors and witnesses of our new world of beer. Snow Beer is willing to work together with customers and channel partners across the country, strive together, grow together and become strong together, and become the leader of the new world of beer in the era of high quality and great prosperity of Chinese beer!”In the future, Snow beer will continue to develop along the road of high quality.