Recently, the “1 yuan tasting” activity of Taishan original pulp beer appeared in major office buildings and supermarkets. After receiving the consumption voucher, consumers can buy Taishan raw pulp 7-day fresh products for 1 yuan. Not only that, the advertisement of Taishan beer through Focus Media Information Technology Co.Ltd(002027) also blew up the elevators of many office buildings.
The vigorous marketing of Taishan crude beer is inseparable from the rapid growth of its performance. Relevant data show that in 2021, the sales volume of Taishan raw pulp beer increased by 30%, achieving double-digit growth for five consecutive years, accounting for 60% of the sales volume of similar products in China; The number of Direct stores exceeded 2300, covering 169 cities in 28 provinces, cities and autonomous regions; Online new media fans exceeded 11 million and cloud store members reached 1.6 million.
In the era of beer giants, why can Taishan puree beer break out against the trend and occupy half of the field of puree beer? Can Taishan raw pulp continue its high growth trend?
can Taishan raw pulp continue high-quality growth
Taishan raw pulp is produced by Taishan beer company in Tai’an City, Shandong Province. It mainly produces raw pulp beer and black beer. Taishan beer also relies on Taishan raw pulp beer to open China’s “fresh” beer market.
According to the data of the National Bureau of statistics, China’s beer production from 2016 to 2021 was 45.064 million kiloliters, 44.015 million kiloliters, 38.122 million kiloliters, 37.653 million kiloliters, 341111 million kiloliters and 35.624 million kiloliters respectively. Although it increased in 2021, it showed a downward trend as a whole.
At present, there are many giants in China’s beer market. According to the industry data, the market share of China Resources beer, Tsingtao Brewery Company Limited(600600) , Budweiser InBev, Beijing Yanjing Brewery Co.Ltd(000729) and Carlsberg in terms of consumption is 23.2%, 16.4%, 16.2%, 8.5% and 6.1% respectively, and the market share of the five leading enterprises has exceeded 70%.
Under the background of the continuous decline of beer production and the abundance of Chinese beer giants, it is not easy for Taishan raw pulp beer to have high growth in subdivided fields. Relevant data show that in 2021, the sales volume of Taishan raw pulp beer increased by 30%, achieving double-digit growth for five consecutive years, accounting for 60% of the sales volume of similar products in China.
It is worth mentioning that the rapid development of Taishan beer has been recognized by capital. In March 2021, Taishan beer obtained 600 million yuan financing from Chinese capital (CMC); In July of the same year, Taishan beer completed a new round of financing, with the exclusive strategic support of Xinjin capital, an investment platform of CITIC.
“By taking advantage of the advantages of localized channels and marketing innovation ability, Taishan beer has created a differentiated product of ‘seven days fresh’ in terms of raw materials and product scarcity, and the added value and premium of the product are high, resulting in a good development prospect for Taishan raw pulp brand.” Cai Xuefei, an expert of China wine industry think tank, told Securities Daily that at the same time, after the upgrading of China’s consumption structure, high-quality alcohol consumption is the development trend. Taishan beer caters to the whole Chinese alcohol consumption trend and directly hits the pain point of consumers’ demand for fresh beer, so it is relatively successful.
With the rapid development of beer raw pulp, Taishan beer also suffers from certain resistance. “As a regional brand, like most Chinese beer, Taishan beer is now faced with problems such as how to realize the continuous upgrading of product structure, how to maintain the high growth of enterprise quality and profit, and improve the high-end value of the brand as soon as possible.” Cai Xuefei said that in addition, China Resources beer, Tsingtao Brewery Company Limited(600600) and other Chinese beer giants are setting foot in the raw pulp beer market. Through the advantages of quality and technology, industrial chain supply and big brand value, they can quickly enter the fresh beer market, which will inevitably have a great impact on Taishan raw pulp.
Fang Gang, a beer marketing expert, told the Securities Daily that China Resources and Qingdao have a nationwide sales service system and a huge and dense distribution network, which can instantly occupy the national catering terminals and entertainment terminals. In contrast, Taishan raw pulp beer is at a disadvantage in the development of nationalization, so it is more necessary to increase the speed of capital and share increase and establish a national production base and sales service system.
With the rapid development of crude beer, China’s beer giants are also laying out refined brewing and crude beer, such as Tsingtao Brewery Company Limited(600600) crude beer pulp, snowflake beer pulp No. 1, Guangzhou Zhujiang Brewery Co.Ltd(002461) Pearl River pulp, etc.
It is not only crude beer, but also the representative of “fresh” beer. Refined beer is also the new direction of the strategy of domestic beer giants. In the past two years, refined beer has achieved rapid development. Industrial and commercial statistics show that in 2018, there were less than 2000 fine brewing beer enterprises in China, but 600 new enterprises were added in the first half of 2021. According to tianyancha data, as of April 2022, there were 6309 enterprises related to fine brewing beer Tsingtao Brewery Company Limited(600600) . According to the statement of Tsingtao Brewery Company Limited(600600) on the investor interaction platform on February 25, “tsingtao1903 Tsingtao Brewery Company Limited(600600) bar” has more than 200 in China, further creating a new highland of beer immersion experience and constantly meeting the multi-level needs of consumers, such as personalization, scene, convenience and high-end.
“The consumption of China’s beer industry is developing towards the fragmentation trend of fine brewing and raw pulp beer. In fact, from the consumption trend of the whole liquor, this is the performance of the upgrading of China’s liquor consumption structure, and also shows that China’s beer consumption will be fragmented and diversified in the future.” Cai Xuefei said that however, the raw pulp beer has the limitation of “freshness”, and the origin limits the national development of raw pulp beer. At the same time, it means that if the raw pulp wants to be bigger in a real sense, large-scale enterprises with national production base, brewing market and channels need to have greater opportunities.
“China’s beer is fresh. For example, China Resources beer and Tsingtao Brewery Company Limited(600600) and other liquor enterprises can basically find core factories within 300 kilometers.” Xiao Zhuqing said that the whole beer industry is changing from quantity to quality. Pursuing high-end is a strategic measure of China’s major beer giants. Enterprises are changing to high-end beer in brand communication, IP building, quality improvement and sales strategy.
