Wednesday, August 26, 2009

Snow beer has uphill struggle in China

tsingtao beer bottleImage via Wikipedia
Compared to Tsingtao beer, the largest beer producer in China, is having a tough time in getting hold of China's massive beer market, says Shaun Rein in an interview with Bloomberg. Although market leader, the larger beer brewers only hold 40 percent of the market, while the rest is covered by mostly local producers.
While China has in volume a larger beer market than Germany and the US combined, the high-end part is fairly small, as most Chinese beer drinkers get their bottles in the store next door, for a price sometimes less than water.
Snow has no branding, cannot sell for a premium since it is perceived as cheap and loyalty of the customers is low, explains Rein. "They will quit if Snow increases the prices." Compared to Snow, Tsingtao has done a much better job in branding itself for the premium market.

The clip of the interview is below.

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Shaun Rein is a speaker at the China Speakers Bureau, When you are interested in having him at your conference or meeting, do let us know.


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