China’s biggest brewer gets hip with the hops in appeal to the internet generation
China Resources beer says it is redesigning packaging to make it more appealing to younger consumers and is working with online stars in promotions
China Resources Beer, the nation’s biggest brewer, is targeting the internet generation’s sense of style as it looks for the next growth market, after reporting an 86.8 per cent increase in net profit for 2017.
Chief executive Hou Xiaohai told a briefing on the company’s results in Hong Kong on Wednesday that it is promoting high-quality products like its Brave the World-Super X beer in conjunction with popular music stars and online programmes that appeal to China’s younger consumers.
“Young people are pursuing products that have a high quality and unique character. As long as the product is in line with their style, no matter if it is an international brand or a domestic one, they will pay for it,” Hou said.
“Not many young people are sitting in the living room and watching TV these days. The internet is the major platform in an individual’s everyday activities,” he added.
Net profit was 1.18 billion yuan (US$186.4 million). Its earnings were lifted by the strong performance of the Snow Beer unit, which China Resources Beer took over in 2016 by buying out its joint venture partner SABMiller. Snow contributed a net profit of 1.175 billion yuan in 2017, to China Resources Beer and helped lift beer sales volume by 0.9 per cent year on year, above the industry average.
Total revenue rose 3.6 per cent to 29.73 billion yuan in 2017 from 28.69 billion yuan a year earlier. The company currently is the largest player in China, with about a 26 per cent share of the market. Hou said that the company was confident of an improved sales performance in 2018 that would be better than that of its rivals.
