News AB InBev is ramping up in China

Discussion in 'Beer News & Releases' started by otispdriftwood, Mar 19, 2017.

  1. otispdriftwood

    otispdriftwood Crusader (736) Dec 9, 2011 Colorado
    Subscriber Beer Trader

    Just read an article from the March 17 issue of Fortune about how AB InBev is going all out in China to promote Goose Island and other craft brands and taking over taps, etc. to make up for their loss of market share in the U.S. Interesting part is that there are few regulations in China keeping them from doing what they want and in fact, the laws favor the bigger players. Unfortunately I cannot provide a link to the article but I saw it on MSMoney.
     
  2. FatBoyGotSwagger

    FatBoyGotSwagger Savant (991) Apr 4, 2009 Pennsylvania

    Good luck without a brewery on chinese soil. The Chinese are very similar to us, they are fat lazy and drink a lot but I do not believe they will pay a premium for anything craft. Unless it is aged in champagne barrels :wink:
     
  3. TrojanRB

    TrojanRB Savant (995) Jul 27, 2013 California
    Supporter Subscriber Beer Trader

    Not surprising. Basically all mature western companies need to penetrate China for growth.
     
  4. drtth

    drtth Poo-Bah (3,128) Nov 25, 2007 Pennsylvania

    They have a brewery on the ground.
     
  5. jesskidden

    jesskidden Meyvn (1,266) Aug 10, 2005 New Jersey
    Subscriber

    AB-InBev China Factsheet:
    Of course, that would have been much bigger if they didn't have to sell off SABMiller's half of the brewer of #1 brand, Snow, which had nearly a quarter of China's beer market.
     
    #7 jesskidden, Mar 19, 2017
    Last edited: Mar 19, 2017
  6. jesskidden

    jesskidden Meyvn (1,266) Aug 10, 2005 New Jersey
    Subscriber

    Fortune article, quoting Sanford Bernstein analyst Trevor Stirling:
    I'd don't know ("more or less" is an interesting qualifier, after all) -
    AB did buy into both Widmer and Redhook in the 1990s, and formed "Coastal Brewing Co." when they bought half of Old Dominion / Fordham a decade ago. Throw in their controversial "100% Share of Mind" program of the late 1990s meant to "incentivize" their distributors who dropped other breweries' beers (most of those hurt were "craft" brewers). Their early "faux-craft" beers, the "American Originals" - Faust, Muenchener, Black&Tan, and American Hop Ale, etc., - were also released in the 1990s, as were the extended Michelob brands and the SNPA clone, Pacific Ridge (IIRC their Shiner Bock clone, Ziegenbock, came out even earlier).

    Now, those things didn't "help" AB much in trying to compete with "craft" and they've certainly been much more aggressive, post-InBev, but I don't think it can be said they "ignored" the segment.
     
    #8 jesskidden, Mar 19, 2017
    Last edited: Mar 19, 2017
  7. otispdriftwood

    otispdriftwood Crusader (736) Dec 9, 2011 Colorado
    Subscriber Beer Trader


    Read the article. They aren't paying a premium, they're paying less than what Chinese breweries can charge due to certain regulations on distribution.
     
  8. otispdriftwood

    otispdriftwood Crusader (736) Dec 9, 2011 Colorado
    Subscriber Beer Trader



    True. "Misinterpreted" or "missed the boat" would have been better descriptors of their response.
     
  9. FatBoyGotSwagger

    FatBoyGotSwagger Savant (991) Apr 4, 2009 Pennsylvania

    As a long time reader of this site and curious in the way people sell beer one man's loophole is another man's way to outwork their competition.
     
  10. Brewday

    Brewday Initiate (153) Dec 25, 2015 New York

    The Chinese are very loyal to certain brands. It's going to be a big challenge changing their minds. They may also have to sell GI in plastic bags because that's the way a lot of them get beer.
     
  11. Thirst_trappist

    Thirst_trappist Initiate (95) Jan 18, 2016 Florida
    Beer Trader

    really? honestly didn't know that
     
    HermitDan likes this.
  12. bbtkd

    bbtkd Meyvn (1,394) Sep 20, 2015 South Dakota
    Supporter Subscriber

    Perhaps they'll be marketing a cherry BCBS? :wink:
     
    HermitDan likes this.
  13. ShoyuStout

    ShoyuStout Initiate (126) Mar 26, 2015 Hawaii
    Beer Trader

    No variants, just non-adjunct 15' box set for 1000.00 yuan / $145 USD
    #newmoney
    [​IMG]
    [​IMG]
     
    HermitDan and bbtkd like this.
  14. bbtkd

    bbtkd Meyvn (1,394) Sep 20, 2015 South Dakota
    Supporter Subscriber

    I was referring to sharing with them the recalled unintentional 2015 cherryish BCBS...

    I do like the box set, though I wouldn't pay more than $45 or so. Shouldn't it say "infamous BCBS 2015"? :wink:
     
  15. drtth

    drtth Poo-Bah (3,128) Nov 25, 2007 Pennsylvania

    IIRC only some dates were bad and money refunded to those with folks with proof of purchase.
     
    LuskusDelph and bbtkd like this.
  16. bbtkd

    bbtkd Meyvn (1,394) Sep 20, 2015 South Dakota
    Supporter Subscriber

    They admitted specific dates could be bad. I just had a 2015 that was not a date they admitted was bad (Oct 6th), and it was definitely off (compared to several other good 2015's I've had), though not full-up cherryish infected. Hopefully these boxed sets are not problematic.
     
    drtth likes this.
  17. JackHorzempa

    JackHorzempa Poo-Bah (3,001) Dec 15, 2005 Pennsylvania
    Supporter

    [​IMG]
     
  18. donspublic

    donspublic Meyvn (1,204) Aug 4, 2014 Texas
    Beer Trader

    So now beer drinkers can join the wine "slap the bag" movement
     
    LuskusDelph and JackHorzempa like this.
  19. JackHorzempa

    JackHorzempa Poo-Bah (3,001) Dec 15, 2005 Pennsylvania
    Supporter

    Why not!?!:slight_smile:
     
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