Britons can now sip on craft beer brewed in China, following an import deal between Edinburgh-based online drinks platform Flavourly and Beijing brewer Panda Brew. The deal is believed to involve the largest ever amount of Chinese craft beer imported into the United Kingdom, with 10,000 bottles of Panda Brew made available to British drinkers…Full Article: China Daily Dec 2017

Key Point

  • In February 2017, Scottish brewing company, Innis & Gunn, signed an agreement with China’s Dxcel International to distribute its beer in mainland China, Hong Kong, Macau, and Taiwan.
  • Founded in 2013 and headquartered in Beijing, Panda Brew is craft brewery that sells beer in 60 Chinese cities (as of December 2017). As a result of its agreement with Flavourly, Panda Brew will supply six different beers to the UK market including a golden ale and stout.

ChinaAg Comments

  • As of mid-2017, China accounted for 25% of the global beer market’s volume, but only 10% of the market’s global revenue and 3% of its global profit.
  • In May 2017, Australia’s Little Creatures Brewery announced its beers will soon be sold in mainland China. At the time, Little Creatures Brewery operated a bar/pub in Hong Kong and planned on opening bars in Shanghai.
  • As of October 2016, China reportedly had more than 3,000 craft beer breweries, which in turn accounted for less than 3% of the country’s total beer output/sales. Key cities for the craft beer industry include Beijing, Shanghai, Guangzhou, Chengdu, Wuhan, Changsha, and Lijiang. Shanghai has approximately 200 different types of craft beer that range in price from CNY 30 to CNY 100 per liter [~US$4.40 to US$14.75].
  • From 2014 to 2015, according to a Beijing beer analyst, China’s total beer sales volume declined 4.9% while sales of premium and ‘super’ premium beer rose by 9% and 17%, respectively. At the time, low to mid-range (quality) beers comprise 80% of the Chinese market sales.
  • In 2014, China’s beer production declined (by 2.7%) for the first time in 24 years. At the same time, China Resources’ Snow Breweries had a 23.8% market share (by volume) in China, followed by Tsingtao Brewery’s Tsingtao Beer at 18.4%, Anheuser-Busch InBev at 14.3%, Beijing Yanjing Brewery at 12.3%, and Carlsberg Group at 7.5%.
  • In 1998, China overtook Germany as the number two consumer of beer, and passed the United States as the top consumer in 2002.
  • Founded in 1997 and headquartered in Shanghai, Dxcel International Trading is an importer and distributor of liquor and beer in China.

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