Why Heineken is not a sure winner in China - Shaun Rein

Shaun Rein

Heineken rocked the beer industry by buying a major share of China's market leader CR Beer. But business analyst Shaun Rein, author of The War for China's Wallet: Profiting from the New World Order, does not believe Heineken is a sure winner, as it purchased a company whose market share was already declining, he tells at CNN Money.

CNN Money:

CR Beer's brands had about a quarter of the Chinese market last year, Euromonitor data shows, but profit margins of many of these drinks are thin and growth is slowing. 

"This is a tie up out of weakness, rather than strength," said Shaun Rein, head of consultancy China Market Research Group. 

He said that Heineken will be looking to take advantage of the Chinese company's better distribution networks to get a bigger market share for its own beers. 

In return, CR Beer gets a more profitable product to market to Chinese consumers. 

Even with this deal, Rein thinks that Heineken will still have a tough time gaining traction in China, as more consumers upgrade their tastes to premium beverages. 

"Wealthier Chinese have been moving more towards micro breweries and specialty beers," he said. "They're not buying Heineken, Corona or Carlsberg."

More at CNN Money.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more experts on managing your China risk at the China Speakers Bureau? Do check out this list.

Asahi leaving Tsingtao as market disappoints - Shaun Rein

Shaun Rein

Asahi is selling its minority stake in Tsingtao beer as the beer market in China is not giving it the gain it expected since it entered in 2009, says business analyst Shaun Rein to Bloomberg. “Tsingtao is in trouble,” said Rein. “It’s not premium enough, and it’s not cheap enough.”

Bloomberg:

The overall beer market in China has declined 6 percent in volume since 2013, according to Euromonitor International. Tsingtao, with about 15 percent market share, trails China Resource Beer Holdings Co.’s popular Snow brand, which had 22 percent of the China market in 2015, Euromonitor data show. 

As the Chinese economy slows, mid-market brands like Tsingtao are squeezed, according to Shaun Rein, managing director of China Market Research Group. Some consumers are looking for lower-priced beers, he said, while more affluent Chinese are switching to pricier craft beers or wine. 

“Tsingtao is in trouble,” said Rein. “It’s not premium enough, and it’s not cheap enough.”

More in Bloomberg.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

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How beer in China goes upmarket - Shaun Rein

Shaun Rein with his two books

Beer has always been a poor-people product, but has been going upmarket, now China´s elite discover the more fancy beers, tells retail analyst Shaun Rein to the Boston Globe. Although, in the sales, craft beers in China hardly show up, that is going to change.

The Boston Globe:

"In some parts of rural China, it’s cheaper to drink beer than water,” said Shaun Rein, founder of Shanghai-based China Market Research Group. “It’s always been a poor man’s beverage.” In the United States, craft beer makes up 12 percent of the market; in China, it barely registers. 

Rein, the researcher, attributes the craft-beer explosion to the increasing number of Chinese who studied abroad. “These are young consumers who want to show they’re more sophisticated and are buying something different,” he said. 

Chimay and floral Belgium beers now pop up on store shelves, and some bigger city bars serve well-known brews from the United States, including Dogfish Head and Ballast Point. 

Rein estimates the industry will see around 25 percent growth annually over the next five years. Meanwhile, sales of traditional beers are declining.

More in the Boston Globe. 

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form. 

Are you looking for more branding experts at the China Speakers Bureau? Do check out this list.  

Why Chinese prefer wine over beer - Shaun Rein

Image via WikipediaBeer promotions and micro-breweries put a lot of effort in the China market, but business analyst Shaun Rein tells AFP he expects the wine market the be the winner. Unlike wine, beer fails to impress, he says.

At 5-10 percent a year, the growth in China's beer market is much slower than for wine, which is becoming the tipple of choice for those seeking to impress, said Shaun Rein, managing director of China Market Research Group in Shanghai. 

"We expect red wine consumption to be growing 20-30 percent a year for the next five years minimum -- it's one of the hottest sectors to be in right now," Rein said... 

"I don't think micro-breweries will ever get hugely popular because there is a different taste and different price point and conception of what beer is," said Rein. "Typically Chinese like more watered down versions of beer -- it is a lot lighter in taste."

More on micro-breweries at AFP Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.

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