The market for beer in Hong Kong has remained relatively stable despite the economic recession.
Following a dip in sales caused by the global economic downturn in the second half of last year, beer sales recovered quickly and steady growth resumed.
There was a flurry of mergers and acquisitions among the larger breweries and the larger enterprises maintained a firm grip on the market. With China's entry into the World Trade Organisation, more foreign breweries are expected to enter into joint ventures there.
Competition is fierce in Hong Kong, with imported European and American beers fighting for market share alongside more traditionally popular Asian beers.
Tsingtao Beer has a long history of success. It has been the beer of choice for the Chinese government since 1949 and successive generations of visiting dignitaries and politicians have enjoyed it at state banquets. Tsingtao Beer has also been a major success overseas.
Premier Zhu Rongji has said that in his travels worldwide he has observed that only two Chinese brands are ever present, Cosco and Tsingtao Beer. Tsingtao is sold in more than 40 countries and exports account for 90 per cent of China's total beer exports.
