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Alchocol in China

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MarketLine Industry Profile

Alcoholic Drinks in China
February 2012
Reference Code: 0099-2201

Publication Date: February 2012

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EXECUTIVE SUMMARY
Market value
The Chinese alcoholic drinks market grew by 9.8% in 2011 to reach a value of $96.5 billion.

Market value forecast
In 2016, the Chinese alcoholic drinks market is forecast to have a value of $145.6 billion, an increase of 50.9% since 2011.

Market volume
The Chinese alcoholic drinks market grew by 5.7% in 2011 to reach a volume of 53.2 billion liters.

Market volume forecast
In 2016, the Chinese alcoholic drinks market is forecast to have a volume of 67.6 billion liters, an increase of 27.1% since 2011.

Category segmentation
Beer, cider & FABs is the largest segment of the alcoholic drinks market in China, accounting for 65.1% of the market's total value.

Geography segmentation
China accounts for 38.7% of the Asia-Pacific alcoholic drinks market value.

Market share
SAB Miller is the leading player in the Chinese alcoholic drinks market, generating a 17% share of the market's value.

Market rivalry
Growth within the alcoholic drinks market has been robust and steady within the last few years, which tends to reduce the rivalry to some extent and attract new players.

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TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................................................... 2 MARKET OVERVIEW .................................................................................................................................................... 7 Market definition ......................................................................................................................................................... 7 Market analysis .......................................................................................................................................................... 7 MARKET DATA.............................................................................................................................................................. 8 Market value............................................................................................................................................................... 8 Market volume............................................................................................................................................................ 9 MARKET SEGMENTATION......................................................................................................................................... 10 Category segmentation ............................................................................................................................................ 10 Geography segmentation ......................................................................................................................................... 11 Market share ............................................................................................................................................................ 12 Market distribution .................................................................................................................................................... 13 MARKET OUTLOOK .................................................................................................................................................... 14 Market value forecast ............................................................................................................................................... 14 Market volume forecast ............................................................................................................................................ 15 FIVE FORCES ANALYSIS ........................................................................................................................................... 16 Summary .................................................................................................................................................................. 16 Buyer power ............................................................................................................................................................. 17 Supplier power ......................................................................................................................................................... 18 New entrants ............................................................................................................................................................ 19 Threat of substitutes................................................................................................................................................. 20 Degree of rivalry ....................................................................................................................................................... 21 LEADING COMPANIES ............................................................................................................................................... 22 Anheuser-Busch InBev ............................................................................................................................................ 22 Molson Coors Brewing Company ............................................................................................................................. 25 SABMiller ................................................................................................................................................................. 28 Tsingtao Brewery Company Limited ........................................................................................................................ 31 MACROECONOMIC INDICATORS ............................................................................................................................. 34 Country Data ............................................................................................................................................................ 34 APPENDIX ................................................................................................................................................................... 36 Methodology............................................................................................................................................................. 36 Industry associations ................................................................................................................................................ 37

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Related Datamonitor research ................................................................................................................................. 37

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LIST OF TABLES
Table 1: China alcoholic drinks market value: $ billion, 2007–11(e)............................................................................... 8 Table 2: China alcoholic drinks market volume: billion liters, 2007–11(e) ...................................................................... 9 Table 3: China alcoholic drinks market category segmentation : $million, by value, 2011(e) ...................................... 10 Table 4: China alcoholic drinks market geography segmentation : $million, by value, 2011(e) .................................. 11 Table 5: China alcoholic drinks market share: % share, by value, 2011(e) .................................................................. 12 Table 6: China alcoholic drinks market distribution: % share, by value, 2011(e) ......................................................... 13 Table 7: China alcoholic drinks market value forecast: $ billion, 2011–16 ................................................................... 14 Table 8: China alcoholic drinks market volume forecast: billion liters, 2011–16 ........................................................... 15 Table 9: Anheuser-Busch InBev: key facts .................................................................................................................. 22 Table 10: Anheuser-Busch InBev: key financials ($) .................................................................................................... 23 Table 11: Anheuser-Busch InBev: key financials (€) .................................................................................................... 23 Table 12: Anheuser-Busch InBev: key financial ratios ................................................................................................. 23 Table 13: Molson Coors Brewing Company: key facts ................................................................................................. 25 Table 14: Molson Coors Brewing Company: key financials ($) .................................................................................... 26 Table 15: Molson Coors Brewing Company: key financial ratios ................................................................................. 26 Table 16: SABMiller: key facts ..................................................................................................................................... 28 Table 17: SABMiller: key financials ($)......................................................................................................................... 29 Table 18: SABMiller: key financial ratios ...................................................................................................................... 29 Table 19: Tsingtao Brewery Company Limited: key facts ............................................................................................ 31 Table 20: Tsingtao Brewery Company Limited: key financials ($) ................................................................................ 31 Table 21: Tsingtao Brewery Company Limited: key financials (CNY) .......................................................................... 32 Table 22: Tsingtao Brewery Company Limited: key financial ratios ............................................................................. 32 Table 23: China size of population (million), 2007–11.................................................................................................. 34 Table 24: China GDP (constant 2000 prices, $ billion), 2007–11 ................................................................................. 34 Table 25: China GDP (current prices, $ billion), 2007–11 ............................................................................................ 34 Table 26: China inflation, 2007–11............................................................................................................................... 35 Table 27: China consumer price index (absolute), 2007–11 ........................................................................................ 35 Table 28: China exchange rate, 2007–11 .................................................................................................................... 35

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LIST OF FIGURES
Figure 1: China alcoholic drinks market value: $ billion, 2007–11(e) ............................................................................. 8 Figure 2: China alcoholic drinks market volume: billion liters, 2007–11(e) ..................................................................... 9 Figure 3: China alcoholic drinks market category segmentation : % share, by value, 2011(e) ................................... 10 Figure 4: China alcoholic drinks market geography segmentation : % share, by value, 2011(e) ............................... 11 Figure 5: China alcoholic drinks market share: % share, by value, 2011(e) ................................................................. 12 Figure 6: China alcoholic drinks market distribution: % share, by value, 2011(e) ........................................................ 13 Figure 7: China alcoholic drinks market value forecast: $ billion, 2011–16 .................................................................. 14 Figure 8: China alcoholic drinks market volume forecast: billion liters, 2011–16 ......................................................... 15 Figure 9: Forces driving competition in the alcoholic drinks market in China, 2011 ..................................................... 16 Figure 10: Drivers of buyer power in the alcoholic drinks market in China, 2011 ......................................................... 17 Figure 11: Drivers of supplier power in the alcoholic drinks market in China, 2011 ..................................................... 18 Figure 12: Factors influencing the likelihood of new entrants in the alcoholic drinks market in China, 2011 ................ 19 Figure 13: Factors influencing the threat of substitutes in the alcoholic drinks market in China, 2011 ......................... 20 Figure 14: Drivers of degree of rivalry in the alcoholic drinks market in China, 2011 ................................................... 21 Figure 15: Anheuser-Busch InBev: revenues & profitability ......................................................................................... 24 Figure 16: Anheuser-Busch InBev: assets & liabilities ................................................................................................. 24 Figure 17: Molson Coors Brewing Company: revenues & profitability .......................................................................... 27 Figure 18: Molson Coors Brewing Company: assets & liabilities.................................................................................. 27 Figure 19: SABMiller: revenues & profitability .............................................................................................................. 30 Figure 20: SABMiller: assets & liabilities ...................................................................................................................... 30 Figure 21: Tsingtao Brewery Company Limited: revenues & profitability ..................................................................... 32 Figure 22: Tsingtao Brewery Company Limited: assets & liabilities ............................................................................. 33

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MARKET OVERVIEW
Market definition
The alcoholic drinks market consists of retail sale of beers, ciders & FABs, spirits and wines. The market is valued according to retail selling price (RSP) and includes any applicable taxes. Any currency conversions used in the creation of this report have been calculated using constant 2010 annual average exchange rates. For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and Thailand.

Market analysis
The Chinese alcoholic drinks market has been decelerating recently, dropping from its double digit annual levels of growth to just under 10% in 2011. This trend is expected to further continue towards the end of the forecast period. The Chinese alcoholic drinks market is expected to generate total revenue of $96.5 billion in 2011, representing a compound annual growth rate (CAGR) of 11.2% between 2007 and 2011. In comparison, the Japanese market will decline with a compound annual rate of change (CARC) of -2%, and the Indian market will increase with a CAGR of 17.9%, over the same period, to reach respective values of $60.5 billion and $28.3 billion in 2011. Market consumption volumes are forecast to increase with a CAGR of 7.4% between 2007-2011, to reach a total of 53,180.1 million liters in 2011. The market's volume is expected to rise to 67,614.9 million liters by the end of 2016, representing a CAGR of 4.9% for the 2011-2016 period. The beer, cider & FABs segment is expected to be the market's most lucrative in 2011, with total revenue of $62.9 billion, equivalent to 65.1% of the market's overall value. The wine segment will contribute revenue of $17.5 billion in 2011, equating to 18.2% of the market's aggregate value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 8.6% for the five-year period 2011 - 2016, which is expected to drive the market to a value of $145.6 billion by the end of 2016. Comparatively, the Japanese market will decline with a CARC of -0.5%, and the Indian market will increase with a CAGR of 11.2%, over the same period, to reach respective values of $59.1 billion and $48.3 billion in 2016.

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MARKET DATA
Market value
The Chinese alcoholic drinks market grew by 9.8% in 2011 to reach a value of $96.5 billion. The compound annual growth rate of the market in the period 2007–11 was 11.2%.

Table 1: China alcoholic drinks market value: $ billion, 2007–11(e)
Year 2007 2008 2009 2010 2011(e) CAGR: 2007–11
SOURCE: MARKETLINE

$ billion 63.1 72.4 79.7 88.0 96.5

CNY billion 427.7 490.6 540.4 596.3 654.4

€ billion 47.5 54.5 60.0 66.3 72.7

% Growth 14.7 10.1 10.3 9.8 11.2%
MARKETLINE

Figure 1: China alcoholic drinks market value: $ billion, 2007–11(e)

SOURCE: MARKETLINE

MARKETLINE

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Market volume
The Chinese alcoholic drinks market grew by 5.7% in 2011 to reach a volume of 53.2 billion liters. The compound annual growth rate of the market in the period 2007–11 was 7.4%.

Table 2: China alcoholic drinks market volume: billion liters, 2007–11(e)
Year 2007 2008 2009 2010 2011(e) CAGR: 2007–11
SOURCE: MARKETLINE

billion liters 40.0 44.7 47.5 50.3 53.2

% Growth 11.8 6.2 6.0 5.7 7.4%
MARKETLINE

Figure 2: China alcoholic drinks market volume: billion liters, 2007–11(e)

SOURCE: MARKETLINE

MARKETLINE

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MARKET SEGMENTATION
Category segmentation
Beer, cider & FABs is the largest segment of the alcoholic drinks market in China, accounting for 65.1% of the market's total value. The wine segment accounts for a further 18.2% of the market.

Table 3: China alcoholic drinks market category segmentation : $million, by value, 2011(e)
Category Beer, cider & FABs Wine Spirits Total
SOURCE: MARKETLINE

2011 62.9 17.5 16.1 96.5

% 65.1% 18.2% 16.7% 100%
MARKETLINE

Figure 3: China alcoholic drinks market category segmentation : % share, by value, 2011(e)

SOURCE: MARKETLINE

MARKETLINE

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Geography segmentation
China accounts for 38.7% of the Asia-Pacific alcoholic drinks market value. Japan accounts for a further 24.3% of the Asia-Pacific market.

Table 4: China alcoholic drinks market geography segmentation : $million, by value, 2011(e)
Geography China Japan India South Korea Rest of Asia-Pacific Total
SOURCE: MARKETLINE

2011 96.5 60.5 28.3 13.0 50.8 249.2

% 38.7 24.3 11.4 5.2 20.4 100%
MARKETLINE

Figure 4: China alcoholic drinks market geography segmentation : % share, by value, 2011(e)

SOURCE: MARKETLINE

MARKETLINE

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Market share
SAB Miller is the leading player in the Chinese alcoholic drinks market, generating a 17% share of the market's value. Tsingtao Brewery Company Limited accounts for a further 12.4% of the market.

Table 5: China alcoholic drinks market share: % share, by value, 2011(e)
Company SAB Miller Tsingtao Brewery Company Limited Anheuser-Busch InBev Molson Coors Brewing Company Other Total
SOURCE: MARKETLINE

% Share 17.0% 12.4% 10.8% 10.6% 49.2% 100%
MARKETLINE

Figure 5: China alcoholic drinks market share: % share, by value, 2011(e)

SOURCE: MARKETLINE

MARKETLINE

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Market distribution
Supermarkets / hypermarkets form the leading distribution channel in the Chinese alcoholic drinks market, accounting for a 36.9% share of the total market's value. Independent retailers accounts for a further 31.4% of the market.

Table 6: China alcoholic drinks market distribution: % share, by value, 2011(e)
Channel Supermarkets / hypermarkets Independent retailers On-trade Convenience stores Other Total
SOURCE: MARKETLINE

% Share 36.9% 31.4% 28.2% 1.7% 1.9% 100%
MARKETLINE

Figure 6: China alcoholic drinks market distribution: % share, by value, 2011(e)

SOURCE: MARKETLINE

MARKETLINE

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MARKET OUTLOOK
Market value forecast
In 2016, the Chinese alcoholic drinks market is forecast to have a value of $145.6 billion, an increase of 50.9% since 2011. The compound annual growth rate of the market in the period 2011–16 is predicted to be 8.6%.

Table 7: China alcoholic drinks market value forecast: $ billion, 2011–16
Year 2011 2012 2013 2014 2015 2016 CAGR: 2011–16
SOURCE: MARKETLINE

$ billion 96.5 105.7 115.4 125.5 135.7 145.6

CNY billion 654.4 716.5 782.0 850.6 919.7 986.7

€ billion 72.7 79.6 86.9 94.5 102.2 109.6

% Growth 9.8% 9.5% 9.1% 8.8% 8.1% 7.3% 8.6%
MARKETLIN

Figure 7: China alcoholic drinks market value forecast: $ billion, 2011–16

SOURCE: MARKETLINE

MARKETLINE

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Market volume forecast
In 2016, the Chinese alcoholic drinks market is forecast to have a volume of 67.6 billion liters, an increase of 27.1% since 2011. The compound annual growth rate of the market in the period 2011–16 is predicted to be 4.9%.

Table 8: China alcoholic drinks market volume forecast: billion liters, 2011–16
Year 2011 2012 2013 2014 2015 2016 CAGR: 2011–16
SOURCE: MARKETLINE

billion liters 53.2 56.0 58.9 61.8 64.7 67.6

% Growth 5.7% 5.4% 5.1% 4.9% 4.8% 4.4% 4.9%
MARKETLINE

Figure 8: China alcoholic drinks market volume forecast: billion liters, 2011–16

SOURCE: MARKETLINE

MARKETLINE

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FIVE FORCES ANALYSIS
The alcoholic drinks market will be analyzed taking beers, ciders & fabs (flavored alcoholic beverages), spirits and wines producers as players. The key buyers will be taken as retail and on-trade companies, and independent growers of apples, grapes and other raw materials as the key suppliers.

Summary
Figure 9: Forces driving competition in the alcoholic drinks market in China, 2011

SOURCE: MARKETLINE

MARKETLINE

Growth within the alcoholic drinks market has been robust and steady within the last few years, which tends to reduce the rivalry to some extent and attract new players. The market leaders produce their own, recognized brands and operate in various segments of the market, which is possible due to the ease of capacity increases, once a company is established. There is a high degree of product differentiation, due to the variety of products offered within the three defined segments, which include: beers, ciders & FABs (flavored alcoholic beverages), spirits and wines. Buyer power varies, depending on buyers’ reliance on alcoholic drinks sales to generate revenues. Therefore, buyer power is greater amongst larger retailers (supermarkets/hypermarkets), as alcoholic drinks are just one of many products they have on offer. The wide range of brands available, with an accompanying variance in quality and price, boosts buyer power. This is however diminished to some extent if consumers favor particular brands, as retailers will be forced to store them. Entering a niche segment may form a successful strategy, as there is a rising demand for specialty alcoholic beverages and these are marketed on the basis of quality and can be sold at higher prices.

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Buyer power
Figure 10: Drivers of buyer power in the alcoholic drinks market in China, 2011

SOURCE: MARKETLINE

MARKETLINE

The main buyers to the Chinese alcoholic drinks market include: supermarkets/hypermarkets, independent retailers, and on-trade businesses; together they account for just under 97% of the distribution channels. The switching costs for buyers are not particularly high, and due to existing possibilities of product differentiation across the three segments in this market (beers, ciders & FABs, spirits and wines) consumer demand is likely to influence retailers stocking decisions. This is particularly the case for on-trade businesses and specialist retailers, as alcoholic drinks for integral part of their business; this reduces the buyer power somewhat. However, alcoholic drinks are not the only products on most retailers’ offer, which indicates that they are not reliant upon the sale of these alone. Consequently, this increases buyer power. Possibilities of backward integration exist, i.e. in form of supermarket chains producing their own, often cheaper than their branded substitutes, alcoholic drinks. However, in terms of brand quality, the major alcoholic drinks manufacturers have the edge over their supermarket rivals, diminishing their buyer power. Overall, buyer power is moderate in the alcoholic drinks market.

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Supplier power
Figure 11: Drivers of supplier power in the alcoholic drinks market in China, 2011

SOURCE: MARKETLINE

MARKETLINE

Suppliers to the alcoholic drinks market are relatively diversified, as each segment (beers, ciders & FABs [flavored alcoholic beverages], spirits and wines) requires different inputs to form the principle ingredients of each individual product. This illustrates that suppliers are relatively fragmented, when the market is considered as a whole. Depending on market segment, specific inputs may differ. Key inputs to the beers, ciders & FABs segment include malted grain, hops, apples and other flavorings. The raw materials required for the production of spirits are cereal grains, fruit and vegetables used in the distillation process. Hops are generally bought from independent producers, with barley often bought from farmers. Apple growers are key suppliers for the production of cider. Grapes are a key input for the production of wine, and although some larger players own/lease vineyards, they also source grapes from independent suppliers. As many of these suppliers operate independently and on a relatively small scale, their influence on the market is weakened. The beers, ciders & FABs segment is predominant in China, accounting for 61.5% of the markets' value, which suggests that suppliers to this segment have a greater influence than that of remaining suppliers of raw materials. Overall, supplier power is moderate in the alcoholic drinks market.

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New entrants
Figure 12: Factors influencing the likelihood of new entrants in the alcoholic drinks market in China, 2011

SOURCE: MARKETLINE

MARKETLINE

New players may enter the market through one or multiple segments. Entry to the alcoholic beverages market may be achieved on large or small scale by finding a niche market. There is a rising demand for specialty alcoholic beverages, i.e. beer. These are marketed on the basis of quality and diversity and can be sold at higher prices. Investment in production equipment can be recouped by adding a good margin to the price of the end-product. The larger companies, however, tend to rely on the mass-market production of internationally palatable alcoholic drinks. Here, margins may be much lower. Producers need to distribute their product widely, which generally relies upon retail channels, such as supermarkets. Despite the presence of company-owned on-trade outlets, these retail chains often have considerable buyer power, which can force down the prices that beer producers are able to obtain. In this a market, scale economies of production become very important. As a result, barriers to entry, such as capital outlay on large-scale production plants and the need to establish reliable supplies from multiple third-party growers, become much higher. Overall, the threat from new entrants is moderate in this market.

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Threat of substitutes
Figure 13: Factors influencing the threat of substitutes in the alcoholic drinks market in China, 2011

SOURCE: MARKETLINE

MARKETLINE

Substitutes to the alcoholic drinks market include non-alcoholic beverages, such as soft drinks, carbonated soft drinks or water. Some alcoholic drink producers offer their own alternatives, like alcohol free lager. However, there is scope for inter-segmental substitutes, as most operators focus on one production segment within the market, e.g. beers, ciders & FABs (flavored alcoholic beverages), spirits or wines. For such players, substitutes could include spirits if the main product their manufacture is beer, etc. There is some difficulty with assessing the benefits of substitutes within the defined segments of the alcoholic drinks market. For example, not only beer but also champagne and white wine are optimally stored in chilled cabinets, which make storage more expensive; more concentrated forms of alcohol (spirits) may offer better returns on shelf space than higher-volume wines and beers, but the per-unit-volume price is often scaled with alcohol content. In terms of non-alcoholic beverages, there are health benefits associated with ingredients, such as fruit, which have vitamin content. This is contrasted to the potential detrimental effects of the over-consumption of alcohol, which include liver damage, and addiction. Some medical research has also argued for the benefits of consumption of wine, in moderation, which could influence the performance of the market leading to changes in market trends, with consumers becoming more health conscious and switching over to health drinks. Ultimately, due to extensive product differentiation within the alcoholic drinks market, and options of a variety of nonalcoholic drinks readily available, the threat from substitutes is boosted and overall assessed as moderate within the alcoholic drinks market.

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Degree of rivalry
Figure 14: Drivers of degree of rivalry in the alcoholic drinks market in China, 2011

SOURCE: MARKETLINE

MARKETLINE

The alcoholic drinks market in China is rather concentrated with the leading players accounting for 50.8% market share in volume terms. In the Chinese region, the beers, ciders & FABs (flavored alcoholic beverages) segment is predominant within the alcoholic drinks market, accounting for 65.1% of the markets' value. Relatively strong product differentiation across the three segments of this market (beers, ciders & FABs, spirits and wines) reduces rivalry to some extent. Although specialty products are available, significant players largely operate mass-marketed products. This implies high fixed costs, because of the need to operate large breweries, distilleries, and requirement of significant storage space and facilities for fermentation. Overall, there is a moderate degree of rivalry in the Chinese alcoholic drinks market.

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LEADING COMPANIES
Anheuser-Busch InBev
Table 9: Anheuser-Busch InBev: key facts
Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange:
SOURCE: COMPANY WEBSITE

Brouwerijplein 1, 3000 Leuven, BEL 32 16 27 61 11 32 16 50 61 11 www.ab-inbev.com December ABI Euronext Bruxelles
MARKETLINE

Anheuser-Busch InBev is engaged in the production, distribution, and sale of beer and soft drinks. The company sells lagers, premium beers, and specialty brews in several countries across the world and operates facilities in over 23 countries. It is the leading global brewer and one of the world's top five consumer products companies. The company offers a portfolio of over 200 brands, that includes global flagship brands Budweiser, Stella Artois and Beck's and fast growing multi-country brands like Leffe and Hoegaarden. In addition, the company's local champion brands include Bud Light, Skol, Brahma, Quilmes, Michelob, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske and Jupiler. The company operates 133 beverages manufacturing facilities globally. ABInBev's operates through seven business segments: North America, Latin America North, Western Europe, Latin America South, Asia Pacific, Central and Eastern Europe, and Global export and holding companies. The company's North American segment is managed by the Anheuser-Busch, Labatt Brewing Company, and Cerveceria Bucanero with respective operations in the US, Canada. Some of the key brands in this zone include Budweiser, Bud Light, Stella Artois and Michelob. Latin America North segment encompasses operations of Brazil, Dominican Republic, Ecuador, Guatemala and Peru. The company manages its Brazilian operations through its subsidiary Cia de Bebidas das Americas-AmBev while the Compania Cervecera Ambev is engaged in the operations of Dominican Republic. Besides, Cervesur manages the operations in Ecuador, Ind. Del Atlantico in Guatemala, Cia Cerv. AmBev is engaged in the operations of the Peru region. Western Europe segment includes the company's operations in the Belgium, Cuba, France, Germany, Switzerland, Austria, Italy, Spain, Luxembourg, the Netherlands, UK and Ireland. InBev Belgium, InBev France, InBev Deutschland Vertriebs, InBev Italia, InBev Nederland, and InBev U.K. manages the ABInBEv's operations in the respective countries. In addition, Luxembourg operations are managed through the Brasserie de Luxembourg Mousel-Diekirch subsidiary.

Key Metrics
The company recorded revenues of $48,083 million in the fiscal year ending December 2010, a decrease of 1.3% compared to fiscal 2009. Its net income was $5,333 million in fiscal 2010, compared to a net income of $6,111 million in the preceding year.

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Table 10: Anheuser-Busch InBev: key financials ($)
$ million Revenues Net income (loss) Total assets Total liabilities Employees
SOURCE: COMPANY FILINGS

2006 17,629.3 2,816.3 34,768.4 18,524.8 85,617

2007 19,115.6 4,037.7 38,018.0 19,968.7 89,000

2008 21,330.5 2,780.6 107,716.5 84,461.1 120,000

2009 48,693.8 6,110.9 149,063.4 105,121.3 116,000

2010 48,083.1 5,333.3 151,470.4 100,072.9 114,000
MARKETLINE

Table 11: Anheuser-Busch InBev: key financials (€)
€ million Revenues Net income (loss) Total assets To al liabilities
SOURCE: COMPANY FILINGS

2006 13,308.0 2,126.0 26,246.0 13,984.0

2007 14,430.0 3,048.0 28,699.0 15,074.0

2008 16,102.0 2,099.0 81,313.0 63,758.0

2009 36,758.0 4,613.0 112,525.0 79,354.0

2010 36,297.0 4,026.0 114,342.0 75,543.0
MARKETLINE

Table 12: Anheuser-Busch InBev: key financial ratios
Ratio Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee
SOURCE: COMPANY FILINGS

2006 16.0% 14.2% 11.4% 19.4% 53.3% 8.5% $205,909 $32,895

2007 21.1% 8.4% 9.3% 7.8% 52.5% 11.1% $214,782 $45,368

2008 13.0% 11.6% 183.3% 323.0% 78.4% 3.8% $177,755 $23,171

2009 12.5% 128.3% 38.4% 24.5% 70.5% 4.8% $419,774 $52,680

2010 11.1% (1.3%) 1.6% (4.8%) 66.1% 3.5% $421,782 $46,783
MARKETLINE

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Figure 15: Anheuser-Busch InBev: revenues & profitability

SOURCE: COMPANY FILINGS

MARKETLINE

Figure 16: Anheuser-Busch InBev: assets & liabilities

SOURCE: COMPANY FILINGS

MARKETLINE

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Molson Coors Brewing Company
Table 13: Molson Coors Brewing Company: key facts
Head office: Telephone: Website: Financial year-end: Ticker: Stock exchange:
SOURCE: COMPANY WEBSITE

1225 17th Street, Denver, Colorado 80202, USA 1 303 927 2337 www.molsoncoors.com December TAP New York
MARKETLINE

Molson Coors Brewing Company (Molson Coors or 'the company') is one of the world's largest brewers. The company has diverse portfolio of more than 65 strategic and partner brands positions with signature brands including Coors, Coors Light, Molson Canadian, and Carling. The company operates in more than 30 countries. The company divides its operations primarily based on its geographic regions: Canada, the US, the UK, and Molson Coors International and corporate. The company's operating subsidiaries include Molson Coors Canada, operating in Canada, and other corporate entities; MillerCoors (formerly Coors Brewing Company), operating in the US; and Molson Coors Brewing Company (UK), operating in the UK. Molson Canada operates the company's business in Canada with seven breweries. The key brands of the company include Coors Light, Molson Canadian, Molson Dry, Molson Export, Rickard's, Creemore Springs and Granville Island. The company also has licensing agreement for Canadian market with other leading brands, which include: Amstel Light under license from Amstel Brouwerij; Heineken and Murphy's under license from Heineken; Asahi and Asahi Select under license from Asahi Beer; Miller Lite, Miller Genuine Draft, Miller Chill, Milwaukee's Best and Milwaukee's Best Dry, under license from SABMiller's subsidiary Miller; and Foster's under license from Foster's Group. The company also operates a joint venture with Grupo Modelo, to import, distribute and market the Modelo beer brand portfolio including the Corona, Coronita, Negra Modelo and Pacifico brands, across all Canadian provinces and territories. The US segment produces, markets, and sells portfolio of brands in the US and its territories including Mexico and Caribbean. The company operates eight major breweries/packaging facilities. The company's brands sold in the US include Coors Light, Coors, Coors Non-Alcoholic, Blue Moon Belgian White Ale and seasonal Blue Moon brands, George Killian's Irish Red Lager, Keystone, Keystone Light, Keystone Ice, and Zima. The company's non-alcoholic segment includes Coors Non-Alcoholic and Sharp's. The UK segment operates three breweries in the UK. The company markets Carling, C2, Coors Light, Worthington's, White Shield, Caffrey's, Kasteel Cru, and Blue Moon, as well as a number of smaller regional ale brands in the UK market. The segment also includes the operations of the joint venture arrangement for the production and distribution of Grolsch brands in the UK and Ireland; the joint venture arrangement for the production and distribution of the Cobra brands in the UK, and Tradeteam joint venture arrangement with DHL (formerly Exel Logistics) for the distribution of products throughout UK. Molson Coors International includes results of operations in emerging markets around the world, including Asia, Mexico, the Caribbean (excluding Puerto Rico) and continental Europe. The company's corporate segment includes interest and certain other general and administrative costs that are not allocated to any of the operating segments. In Asia, the company primarily operates in China, Japan, and Philippines. The company markets Coors Light in China, brewed by a third party contractor; and Zima and Coors brands in Japan, contract brewed by SAB Miller Vietnam. Furthermore, the company operates through a license partnership agreement in Philippines.

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The European business is mainly focused on marketing Coors Light to Spain and Scandinavian countries, including the supplies to UK military operations globally. The company markets Coors Light in Mexico through an exclusive licensing agreement with Cerveceria Cuauhtemoc Moctezuma, a subsidiary of FEMSA Cerveza. In addition, the company' products are sold in a number of Caribbean islands and the Panama through its MillerCoors subsidiary.

Key Metrics
The company recorded revenues of $3,254 million in the fiscal year ending December 2010, an increase of 7.3% compared to fiscal 2009. Its net income was $708 million in fiscal 2010, compared to a net income of $720 million in the preceding year.

Table 14: Molson Coors Brewing Company: key financials ($)
$ million Revenues Net income (loss) Total assets Total liabilities Employees
SOURCE: COMPANY FILINGS

2006 5,845.0 361.0 11,603.4 5,786.1 9,550

2007 6,190.6 497.2 13,451.6 6,258.4 9,700

2008 4,774.3 378.7 10,386.6 4,347.2 10,100

2009 3,032.4 720.4 12,021.1 4,928.3 11,521

2010 3,254.4 707.7 12,697.6 4,855.0 14,490
MARKETLINE

Table 15: Molson Coors Brewing Company: key financial ratios
Ratio Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee
SOURCE: COMPANY FILINGS

2006 6.2% 6.1% (1.7%) (10.6%) 49.9% 3.1% $612,040 $37,804

2007 8.0% 5.9% 15.9% 8.2% 46.5% 4.0% $638,205 $51,257

2008 7.9% (22.9%) (22.8%) (30.5%) 41.9% 3.2% $472,703 $37,495

2009 23.8% (36.5%) 15.7% 13.4% 41.0% 6.4% $263,206 $62,529

2010 21.7% 7.3% 5.6% (1.5%) 38.2% 5.7% $224,596 $48,841
MARKETLINE

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Figure 17: Molson Coors Brewing Company: revenues & profitability

SOURCE: COMPANY FILINGS

MARKETLINE

Figure 18: Molson Coors Brewing Company: assets & liabilities

SOURCE: COMPANY FILINGS

MARKETLINE

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SABMiller
Table 16: SABMiller: key facts
Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange:
SOURCE: COMPANY WEBSITE

One Stanhope Gate, London, W1K 1AF, GBR 44 20 7659 0111 44 20 7659 0100 www.sabmiller.com March SAB London
MARKETLINE

SABMiller is one of the world's largest brewers with brewing interests and distribution agreements across six continents. The company markets more than 200 brands in over 75 countries. The company's operations are primarily divided across beer manufacturing and soft drinks business. In premium beers category, SABMiller offers brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft, Fosters and Grolsch. It also markets a range of local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. Additionally, the company is engaged in the bottling business, and is one of the largest bottlers of Coca-Cola products. SABMiller's reporting is primarily based on six geographical operations: Latin America; Europe; South Africa; Africa; Asia; and North America. The Latin America segment covers SABMiller's primary brewing and beverage operations in Colombia, Ecuador, El Salvador, Honduras, Panama and Peru. The segment also bottles soft drinks for Coca-Cola in El Salvador and Honduras; and for PepsiCo International in Panama. In Latin America, the company operates 17 breweries and 15 bottling plants. The major brands for this segment includes Aguila, Atlas, Balboa, Barena, Club, Club Colombia, Costena, Cristal, Cusquena, Golden Light, Imperial, Pilsen, Pilsener, Pilsen Callao, Pilsen Trujillo, Poker, Pony Malta, Port Royal and Salva Vida. The Europe segment of the company operates 21 breweries in 10 countries including Czech Republic, Hungary, Italy, Poland, Romania, Russia, Slovakia, Spain (Canary Islands), Netherlands and Ukraine. The company also exports to further eight European markets including the UK and Germany. SABMiller's key brands in this segment include Arany Aszok, Dorada, Dreher, Gambrinus, Grolsch, Kozel, Lech, Peroni, Peroni Nastro Azzurro, Pilsner Urquell, Radegast Birell, Saris, Timisoreana, Topvar, Tropical, Tyskie, Ursus, Zolotaya Bochka and Zubr. SABMiller operates in South Africa through South African Breweries (SAB). SAB is engaged in the breweries and bottling business and operates seven breweries and six bottling plants in the country. The segment also exports its key brands in Namibia. Additionally, it is engaged in the hotel and gaming sector through the Tsogo Sun group. In February 2010, SABMiller merged Tsogo Sun with Gold Reef Resorts, a Johannesburg Stock Exchange listed business with premier gaming assets in five of South Africa's provinces, through an all-share merger. SABMiller exchanged its 49% interest in Tsogo Sun for a 39.7% interest in the enlarged Gold Reef/Tsogo Sun business. The primary brands of the segment includes Appletiser, Brutal Fruit, Carling Black Label, Castle Lager, Castle Lite, Castle Milk Stout, Hansa Marzen Gold, Hansa Pilsener, Redd's, Sarita and Skelter's Straight. The Africa segment of the company covers 16 countries. The company operates in 19 other African countries through a strategic alliance with the Castel group and through associated undertakings in Kenya and Zimbabwe. Overall, SABMiller operates 31 breweries and 22 bottling plants in Africa; and markets brands like 2M, Ambo, Castle Lager, Castle Milk Stout, Chibuku, Club, Eagle, Kilimanjaro, Laurentina, Lion Lager, Maluti, Mosi, Ndovu, N'gola, Nile Special, Rwenzori, Safari, Sibebe, Source, Stone, St Louis, Voltic and White Bull.

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SABMiller operates in Asia through CR Snow, a partnership with China Resources Enterprise. The Asia segment operates 12 breweries and markets key brands like Bluetongue, Foster's, Haywards, Indus Pride, Knock Out, Royal Challenge, Snow and Zorok. SABMiller's operations in North America are conducted through MillerCoors, a joint venture with Molson Coors Brewing Company. The company operates eight breweries in North America and markets brands like Blue Moon, Coors Banquet, Coors Light, Foster's, Henry Weinhard's, Icehouse, Keystone Light, Killian's, Leinenkugel's, MGD 64, Mickey's, Miller Chill, Miller Genuine Draft, Miller High Life, Miller Lite, Milwaukee's Best, Molson Canadian, Olde English, Sparks and Steel Reserve. In December 2011 SABMiller acquired the Australian company Foster’s Group.

Key Metrics
The company recorded revenues of $19,408 million in the fiscal year ending March 2011, an increase of 7.7% compared to fiscal 2010. Its net income was $2,557 million in fiscal 2011, compared to a net income of $2,081 million in the preceding year.

Table 17: SABMiller: key financials ($)
$ million Revenues Net income (loss) Total assets Total liabilities Employees
SOURCE: COMPANY FILINGS

2007 18,620.0 1,649.0 28,736.0 14,330.0 53,772

2008 21,410.0 2,023.0 36,082.0 17,838.0 66,949

2009 18,703.0 1,881.0 31,619.0 15,506.0 69,166

2010 18,020.0 2,081.0 37,499.0 16,905.0 70,131

2011 19,408.0 2,557.0 39,108.0 16,349.0 70,000
MARKETLINE

Table 18: SABMiller: key financial ratios
Ratio Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee
SOURCE: COMPANY FILINGS

2007 8.9% 21.6% 6.0% 4.3% 49.9% 5.9% $346,277 $30,667

2008 9.4% 15.0% 25.6% 24.5% 49.4% 6.2% $319,796 $30,217

2009 10.1% (12.6%) (12.4%) (13.1%) 49.0% 5.6% $270,407 $27,195

2010 11.5% (3.7%) 18.6% 9.0% 45.1% 6.0% $256,948 $29,673

2011 13.2% 7.7% 4.3% (3.3%) 41.8% 6.7% $277,257 $36,529
MARKETLINE

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Figure 19: SABMiller: revenues & profitability

SOURCE: COMPANY FILINGS

MARKETLINE

Figure 20: SABMiller: assets & liabilities

SOURCE: COMPANY FILINGS

MARKETLINE

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Tsingtao Brewery Company Limited
Table 19: Tsingtao Brewery Company Limited: key facts
Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange:
SOURCE: COMPANY WEBSITE

Tsingtao Beer Tower, Hongkong Road, Central, Qingdao, CHN 86 532 857 11119 86 532 857 14719 www.tsingtao.com.cn December 600600 Shanghai
MARKETLINE

Tsingtao Brewery Company Ltd. (Tsingtao Brewery) is engaged in brewing and sale of beer, and other related business. Its product Tsingtao Beer is marketed and distributed to more than 60 countries and regions throughout the world. The company primarily operates in China, and is headquartered in Qingdao. The company operates 53 breweries and one malting plant in 18 provinces, cities and regions all over China. The company markets beer products under the flagship of Tsingtao, Shanshui, Hans and Laoshan. The company’s subsidiaries are engaged in the production, sales and domestic trade of beer. The company's geographic segments include Qingdao region, other Shandong regions, Huabei region, Huanan region and overseas. Some of the company's subsidiaries include: Shenzhen Tsingtao Brewery Huanan Holding, Tsingtao Brewery (Zhuhai) Company, Tsingtao Brewery (Sanshui) Company, Tsingtao Brewery (Chenzhou) Company, Tsingtao Brewery (Huangshi) Company, Tsingtao Brewery (Yingcheng) Company, Shenzhen Tsingtao Beer Asahi Company, Shenzhen Huanan Tsingtao Brewery Sales Company Tsingtao Brewery (Nanning) Company, and Tsingtao Brewery (Changsha) Company.

Key Metrics
The company recorded revenues of $2,935 million in the fiscal year ending December 2010, an increase of 10.4% compared to fiscal 2009. Its net income was $224 million in fiscal 2010, compared to a net income of $184 million in the preceding year.

Table 20: Tsingtao Brewery Company Limited: key financials ($)
$ million Revenues Net income (loss) Total assets Total liabilities
SOURCE: COMPANY FILINGS

2006 1,722.3 66.1 1,412.7 572.0

2007 1,995.6 79.5 1,702.8 819.6

2008 2,327.6 103.2 1,848.4 901.9

2009 2,658.7 184.4 2,192.8 929.8

2010 2,934.8 224.3 2,622.0 1,188.4
MARKETLINE

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Table 21: Tsingtao Brewery Company Limited: key financials (CNY)
CNY million Revenues Net income (loss) Total assets Total liabilities
SOURCE: COMPANY FILINGS

2006 11,677.2 447.9 9,578.0 3,878.3

2007 13,529.9 538.9 11,545.2 5,556.9

2008 15,781.4 699.6 12,532.2 6,114.6

2009 18,026.1 1,250.0 14,867.5 6,304.3

2010 19,897.8 1,520.5 17,777.1 8,057.4
MARKETLINE

Table 22: Tsingtao Brewery Company Limited: key financial ratios
Ratio Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets
SOURCE: COMPANY FILINGS

2006 3.8% 16.5% 0.0% (4.1%) 40.5% 4.7%

2007 4.0% 15.9% 20.5% 43.3% 48.1% 5.1%

2008 4.4% 16.6% 8.5% 10.0% 48.8% 5.8%

2009 6.9% 14.2% 18.6% 3.1% 42.4% 9.1%

2010 7.6% 10.4% 19.6% 27.8% 45.3% 9.3%
MARKETLINE

Figure 21: Tsingtao Brewery Company Limited: revenues & profitability

SOURCE: COMPANY FILINGS

MARKETLINE

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Figure 22: Tsingtao Brewery Company Limited: assets & liabilities

SOURCE: COMPANY FILINGS

MARKETLINE

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MACROECONOMIC INDICATORS
Country Data
Table 23: China size of population (million), 2007–11
Year 2007 2008 2009 2010 2011(e) Population (million) 1,317.9 1,324.7 1,331.4 1,338.0 1,344.6 % Growth 0.5% 0.5% 0.5% 0.5% 0.5%

SOURCE: MARKETLINE

MARKETLINE

Table 24: China GDP (constant 2000 prices, $ billion), 2007–11
Year 2007 2008 2009 2010 2011(e) Constant 2000 Prices, $ billion 2,824.9 3,160.4 3,486.9 3,846.0 4,203.7 % Growth 14.2% 11.9% 10.3% 10.3% 9.3%

SOURCE: MARKETLINE

MARKETLINE

Table 25: China GDP (current prices, $ billion), 2007–11
Year 2007 2008 2009 2010 2011(e) Current Prices, $ billion 3,494.5 4,532.3 5,050.9 5,807.3 6,695.2 % Growth 25.4% 29.7% 11.4% 15.0% 15.3%

SOURCE: MARKETLINE

MARKETLINE

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Table 26: China inflation, 2007–11
Year 2007 2008 2009 2010 2011(e) Inflation Rate (%) 4.8% 5.9% (0.7%) 3.3% 5.5%

SOURCE: MARKETLINE

MARKETLINE

Table 27: China consumer price index (absolute), 2007–11
Year 2007 2008 2009 2010 2011(e) Consumer Price Index (2000 = 100) 113.7 120.4 119.5 123.5 130.3

SOURCE: MARKETLINE

MARKETLINE

Table 28: China exchange rate, 2007–11
Year 2007 2008 2009 2010 2011 Exchange rate ($/CNY) 7.6172 6.9623 6.8409 6.7788 6.4544 Exchange rate (€/CNY) 10.4228 10.1875 9.5123 9.0005 8.9794

SOURCE: MARKETLINE

MARKETLINE

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APPENDIX
Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, crosschecked and presented in a consistent and accessible style. Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases provide the foundation for all related industry profiles Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends MarketLine aggregates and analyzes a number of secondary information sources, including: National/Governmental statistics International data (official international sources) National and International trade associations Broker and analyst reports Company Annual Reports Business information libraries and databases

Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

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Industry associations
China Alcoholic Drinks Industry Association
Beijing 100833, China Tel.: 86 10 6839 6513 Fax: 86 10 6802 3239 www.clii.com.cn

Related Datamonitor research
Industry Profile Alcoholic Drinks in Europe Alcoholic Drinks in Asia-Pacific Alcoholic Drinks in Spain Alcoholic Drinks in the United States Alcoholic Drinks in Japan

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