Beer sales and stock prices in China have risen just ahead of the FIFA World Cup that will take place in Russia from 14 June to 15 July.
Numerous Chinese football fans will be watching the tournament in bars and restaurants where beer consumption is particularly high. According to Tmall statistics, beer sales had already picked up in May, with monthly sales volume increasing by nearly 100%. During May, the beer sales reached 1.3 million bottles on a single-day.
The Shanghai Stock Exchange Index revealed that beer stocks have risen, this includes Yanjing Beer, Chongqing Beer, Lanzhou Huanghe and Pearl River Beer.
It it evident that The FIFA World Cup has boosted the beer sector which has seen higher sales compared to previous years.
In 2017, the sales revenue from Chongqing Beer’s low-end products such as Chongqing 33 and Shancheng dropped by 2.07%, and that of medium-range products Lebor and Chongqing Guobin declined by 1.81%.
In the first quarter of 2018 Chongqing Beer, a subsidiary of Denmark’s Carlsberg Group in China, sold 214,000 kilolitres of beer, up 3.33% year-on-year, and its revenue reached 813 million yuan, up 10.73% year-on-year.
Marketing research firm Euromonitor International, stated that more than 30% of the beer market in China will be medium and high-end products by 2020.
An Independent food and beverage analyst, Zhu Danpeng, said: “World Cup-themed marketing efforts are focusing less on traditional retailers such as supermarkets because their customers are mainly middle-aged and elderly people, who are price-sensitive and no longer belong to the core audience for soccer games.”
He added that restaurants and bars are becoming a major battlefield for attracting consumers, as their customers tend to be less sensitive to beer prices and are easier to sell medium-and-high end products to.
BRICS Journal supports responsible drinking.
Source: China Daily