CR Beer Eyes Baijiu Top-Line Growth and Steady Profit Growth From Beer Premiumization
China Resources Beer, or CR Beer, has the largest volume share in China’s beer market in 2021 and its Snow brand commands over 20% share according to Euromonitor. This has been enabled by decades of acquisitions of breweries and local brands by CR Beer just as Chinese beer volume was taking off. While rapid expansion has helped attain its leadership position, it also created issues like overcapacity, redundant workforce, and inefficient management of a vast number of local brands. As sales volume in the China beer market peaked in 2013, brewers had to transition their business focus to profit growth. In response, CR Beer has taken steps to reduce headcount, improve utilization, and consolidate production lines in order to achieve higher efficiencies in sales and marketing on a nationwide basis.