Tsingtao Brewery

Last updated
Tsingtao Brewery Company Limited
Native name
青岛啤酒股份公司
Type Public
SSE: 600600
Founded1903;119 years ago (1903)
Headquarters,
Area served
Global export
Key people
Chairman: Huang Kexin
RevenueIncrease2.svg CN¥29.049 billion (2014) [1]
Increase2.svg CN¥1.990 billion (2014) [1]
Website www.tsingtaobeer.com

Tsingtao Brewery Co. Ltd. (simplified Chinese :青岛啤酒厂; traditional Chinese :青島啤酒廠; pinyin :Qīngdǎo Píjiǔchǎng) is China's second largest brewery, with about 15% of domestic market share. [2] [3] It was founded in 1903 by German settlers in Tsingtau (Qingdao), Kiautschou Bay Leased Territory. Its logo displays an image of Zhanqiao, located on Qingdao's southern shore.[ not verified in body ]

Contents

History

Tsingtao Brewery was founded by the Anglo-German Brewery Co. Ltd., an English-German joint stock company based in Hong Kong which owned it until 1916. The brewery sold beers to mainly Europeans in China. [4] The brewery was founded on August 15, 1903 as the Germania-Brauerei (Germania Brewery) with a paid-in capital of 400,000 Mexican silver dollars divided into 4,000 shares priced at $100 each. [5]

Founding members of the Supervisory Board [5]
Brewery Directors [5]
Brewmasters [5]

The first beer was served on December 22, 1904. [5]

On August 16, 1916 an extraordinary general meeting was held in Shanghai. Liquidators were appointed and it was decided the company would be sold to the Dai-Nippon Brewery (大日本麦酒, which in 1949 was split into Asahi Breweries and what later became Sapporo Brewery). The Japanese military administration in Tsingtao approved the liquidation on September 9, 1916. German equity was approximately 70 percent. The German share of the sales price attributable to shareholders was in the hands of the liquidators by April 2, 1921. [5] [6]

Nationalization

Brewery in Qingdao. Tsingdao Brewery.jpg
Brewery in Qingdao.

After Japan's surrender to the Allies and its retreat from China, the Tsingtao Brewery was turned into a Chinese brewery under ownership of the Tsui family and supervision of the Nationalist government in Nanjing.[ citation needed ] However, this period of ownership only lasted until 1949 when, after a civil war, the People's Republic of China was founded. Shortly after, due to Communist policies, all private shares of the Tsingtao Brewery that had previously belonged to the Tsui family were confiscated and the company became a state-owned enterprise.

Privatization

The company was privatized in the early 1990s and in 1993 merged with three other breweries in Qingdao and was finally renamed Tsingtao Brewery Company Limited. At one point 27% of the company was owned by Anheuser-Busch. The company once owned several other breweries in China, some of which also produced Tsingtao Beer.

On January 23, 2009, Anheuser-Busch InBev announced that it was selling 19.9% to Asahi Breweries for $667 million. The sale will make Asahi Breweries, Ltd. the second largest shareholder in Tsingtao behind only the Tsingtao Brewery Group. On May 9, 2009 Anheuser-Busch InBev sold its remaining 7% to Chinese tycoon Chen Fashu (陈发树) for $235 million. [7]

In January 2017, Asahi Breweries announced that it would sell its 20 percent share in Tsingtao which it had owned since 2009; the value of this share of the company is estimated at US$1.1 billion. [8]

Beers

A bottle of Tsingtao beer Cerveza China (32366210444).jpg
A bottle of Tsingtao beer

Tsingtao Beer, a well-hopped standard pale lager of 4.7% abv, is the flagship brew, accounting for most of the brewery's production. An unpasteurised version is sold as Tsingtao Draft Beer . Tsingtao Beer was long advertised as being "brewed with mineral water from the Laoshan Spring", which contributed to its characteristic flavor, but that now applies only to beer produced in Qingdao, and not to that produced in the company's other breweries.[ citation needed ]

The brewery also produces a number of other beers, mostly for the local market. Those sometimes found outside China include Tsingtao Dark Beer (5.2% abv), and more rarely Tsingtao Spirulina Green Beer, also sold as Tsingtao Green Beer, a 4.5% abv green-coloured pilsner containing spirulina as an additive, and claimed to promote good health. The alcohol content of export versions may vary slightly from those for the domestic market.[ citation needed ]

Locals typically buy this famed draft brew in branded plastic bags, a phenomenon known as the "beer takeaway". Buying Tsingtao beer this way is even more popular than buying it by the bottle.[ citation needed ]

Export orientation

The beer market in China was very underdeveloped in the 1980s and the brewery was forced to concentrate on overseas markets. The Chinese economic reforms in the early 1980s facilitated exportation. However, while concentrating on international markets, the brewery also attempted to sell its beer on the domestic market and competed with other domestic brands as well as foreign brands.[ citation needed ]

The main export company for the brewery was the "Good Harvest of Five Grains Corporation" based in Hong Kong. The Good Harvest of Five Grains Corporation also tried to market the beer in Hong Kong itself and later built a wholesale network consisting of up to 300 companies.[ citation needed ]

Tsingtao Beer was introduced to the United States in 1972, and soon became the top-selling Chinese beer in the U.S. market; it has maintained this leadership within the United States ever since,[ citation needed ] despite increasing competition from other well known Chinese beer brands, Zhujiang and Yanjing. As of July 2018, distribution in the UK and Ireland is handled by C&C Group PLC. The Tsingtao brand is sold in 62 countries and regions around the world, [9] and accounts for more than 50% of China's beer exports. According to the company's financial figures from 2010, Tsingtao saw a 6.6% year-on-year revenue increase from sales to Hong Kong and other overseas markets. [10]

National marketing

A double-decker bus with Tsingtao beer advertisement in Hong Kong. 6411 at Western Harbour Crossing Toll Plaza (20181129115423).jpg
A double-decker bus with Tsingtao beer advertisement in Hong Kong.

Before the 1949 takeover by the new PRC government, the brewery had used imported raw material and water from the Laoshan mountain. With the outbreak of the Korean War and the resulting embargo of the People's Republic by the West, the brewery was forced to use domestic products, and the government encouraged peasants in Shandong to harvest the necessary raw materials (mainly hops and barley) themselves. The government used various incentives, like free seeds, to achieve this goal.

The brewery had previously used nationalistic marketing strategies, and after the switchover to production using only domestic material this nationalist marketing effort was increased. However, the brewery still maintained its international roots.[ a fact or an opinion? ]

International Beer Festival

The brewery first applied for permission for a Qingdao International Beer Festival in 1991 and received approval and support from the Qingdao municipal administration, even to the extent that the city became the main sponsor. The first festival was opened on June 23, 1991, and has been held annually ever since. The festival was named "International Beer Festival" to attract foreigners as well as Chinese, although the main purpose of the festival was to make the brand more popular for domestic consumers. [11]

The festival is usually held in late August and lasts for 14 days. During the festival, there are shows in the city and people enjoy many varieties of international beer instead of only Tsingtao. Nowadays the International Beer Festival is not meant simply to publicize the Tsingtao Brewery, but also to encourage the development of Qingdao's beer culture.[ a fact or an opinion? ]

See also

Related Research Articles

Stella Artois Belgian pilsner

Stella Artois is a pilsner beer, first brewed in 1926 by Brouwerij Artois in Leuven, Belgium. In its original form, the beer is 5.2 per cent ABV, the country's standard for pilsners. The beer is also sold in other countries like the UK, Ireland, Canada and Australia, where it has a reduced ABV. Stella Artois is owned by Interbrew International B.V. which is a subsidiary of the world's largest brewer, Anheuser-Busch InBev SA/NV.

Beer in China

Beer in China has become increasingly popular in the last century due to the popularity of local and imported brands. Chinese beer has also seen a rise in popularity internationally in the last few decades. While most Chinese beers are pale lagers, other styles are occasionally found, such as Tsingtao Dark Beer.

Anheuser-Busch American brewing company

Anheuser-Busch Companies, LLC is an American brewing company headquartered in St. Louis, Missouri. Since 2008, it has been a wholly owned subsidiary of Anheuser-Busch InBev which also has its North American regional management headquarters in St. Louis.

South African Breweries

South African Breweries is a major brewery headquartered in Johannesburg, South Africa and was a wholly owned subsidiary of SABMiller until its interests were sold to Anheuser-Busch InBev on 10 October 2016. South African Breweries is now a direct subsidiary of Anheuser-Busch InBev SA/NV.

Grolsch Brewery Dutch brewery

Grolsch Brewery , known simply as Grolsch, is a Dutch brewery founded in 1615 by Willem Neerfeldt in Groenlo. In 1895 the de Groen family bought the brewery. They had started their own brewery in Enschede the Netherlands in the early 19th century. It held a significant stake until November 2007. Today the main brewery is located in Enschede.

SABMiller

SABMiller plc was a South African multinational brewing and beverage company headquartered in Woking, England on the outskirts of London until 10 October 2016 when it was acquired by Anheuser-Busch InBev. Prior to that date, it was the world's second-largest brewer measured by revenues and was also a major bottler of Coca-Cola. Its brands included Fosters, Miller, and Pilsner Urquell. It operated in 80 countries worldwide and in 2009 sold around 21 billion litres of beverages. Since 10 October 2016, SABMiller is a business division of Anheuser-Busch InBev SA/NV, a Belgian multinational corporation with headquarters in Leuven.

Fosters Group

Foster's Group Pty. Ltd. was an Australian beer group with interests in brewing and soft drinks, known for Foster's Lager, now called Carlton & United Breweries since the company was renamed in 2011. Foster's was founded in 1888 in Melbourne, Victoria by two American brothers, who sold the brewery a year later.

Kamenitza

Kamenitza is one of the top-selling Bulgarian beer companies, alongside Heineken and Astika based in the city of Haskovo. It was established in 1881 and is currently owned by the multinational Molson Coors. The brewery has a wide variety of lager and dark beers. Its slogan is "Mazhete znayat zashto" which translates to "Men know why."

Topvar Breweries is a beer brewing company in Slovakia. The company was created by the merger of the Saris and Topvar breweries on 1 January 2007, after both were purchased by global brewing giant SABMiller in 2006. Subsequently, as part of the agreements made with regulators before Anheuser-Busch InBev was allowed to acquire SABMiller in October 2016, Topvar was sold to Asahi Breweries of Japan on December 13, 2016; the deal is expected to close during the first half of 2017.

Asahi Breweries Japanese food and beverage company

Asahi Group Holdings, Ltd. is a Japanese global beer, spirits, soft drinks and food business group headquartered in Sumida, Tokyo.

Grupo Modelo Large Mexican brewery

Grupo Modelo is a large brewery in Mexico that exports beer to most countries of the world. Its export brands include Corona, Modelo, and Pacífico. Grupo Modelo also brews brands that are intended solely for the domestic Mexican market and has exclusive rights in Mexico for the import and distribution of beer produced by Anheuser-Busch. Until the 1960s, Grupo Modelo used red poppy flowers in most of its advertising.

Harbin Brewery is a Chinese brewery founded in 1900 in Harbin, China. As China's fourth largest brewery and its oldest one, it has a leading position in Northeast China and owns the Hapi beer brand.

Kompania Piwowarska is a Polish brewing group based in Poznań, established in 1999. Since 2017 it has been owned by Asahi Breweries. Kompania Piwowarska currently has three breweries: Lech Browary Wielkopolski in Poznań, Tyskie Browary Książęce in Tychy and Browar Dojlidy in Białystok. Tyskie Browary Książęce, one of the oldest breweries in Europe, was founded in 1629.

Oriental Brewery

Oriental Brewery or OB is a South Korean brewery currently owned by AB InBev, and initially founded by Doosan Group.

SABMiller was one of the top five global brewing companies, and had a range of over 150 beers, including international beers such as Pilsner Urquell, and Miller Genuine Draft, and local ones such as Gambrinus and Castle Milk Stout.

The Qingdao International Beer Festival is a yearly festival held in Qingdao in Shandong province, China. The event is jointly sponsored by national state ministries and the Qingdao Municipal Government.

Anheuser-Busch InBev SA/NV, commonly known as AB InBev, is a Belgian multinational drink and brewing company based in Leuven, Belgium. AB InBev has a global functional management office in New York City, and regional headquarters in São Paulo, London, St. Louis, Mexico City, Bremen, Johannesburg and others. It has approximately 630 beer brands in 150 countries.

InBev is a brewing company that resulted from the merger between Belgium-based company Interbrew and Brazilian brewer AmBev which took place in 2004. It existed independently until the acquisition of Anheuser-Busch in 2008, which formed Anheuser-Busch InBev. InBev had operations in over 30 countries and sales in over 130 countries. In 2006, it had a market capitalization of €30.6 billion and net profit of €3.2 billion on sales of €13.3 billion.

Snow (beer)

Snow is a brand of lager beer from Shenyang, China. It is brewed by CR Snow, that was a joint venture between SABMiller and China Resources Enterprises. When Snow was first released in 1993 it was produced by three breweries. As of 2014, CRSB was the largest brewing company in China with over 90 breweries across the country, brewing more than 10 gigalitres of Snow every year.

Anheuser-Busch, a wholly owned subsidiary of Anheuser-Busch InBev SA/NV, is the largest brewing company in the United States, with a market share of 45 percent in 2016.

References

  1. 1 2 公司简介. Official website of Tsingtao Brewery (in Chinese). Archived from the original on 1 November 2015. Retrieved 1 December 2015.
  2. Alcoholic Beverages in China - Industry Profile by datamonitor.com
  3. "China Beer" (PDF). Archived from the original (PDF) on 2016-03-04. Retrieved 2013-06-13.
  4. Pilcher, Jeffrey; Wang, Yu; Guo, Yuebin Jackson (June 2018). ""BEER WITH CHINESE CHARACTERISTICS": MARKETING BEER UNDER MAO". Revista de Administração de Empresas. 58 (3): 303–315. doi:10.1590/s0034-759020180310. ISSN   2178-938X.
  5. 1 2 3 4 5 6 Matzat, Wilhelm (May 2003). "Germania Brauerei und ihre Angestellten 1903-1914" [Germania Brewery and its Employees]. tsingtau.org (in German). Wilhelm Matzat. Retrieved June 9, 2010.
  6. Politisches Archiv des Auswärtiges Amt, R 85 365 (in German) [Political Archives of the Foreign Office, R 85 365]
  7. Anheuser-Busch InBev to Sell Minority Stake in Tsingtao to Asahi (PDF). Retrieved 2013-06-13.[ permanent dead link ]
  8. "Asahi Selects Morgan Stanley to Sell Tsingtao Holding". Bloomberg News. Bloomberg. January 15, 2017. Retrieved February 1, 2017.
  9. "Tsingtao Lager History". Tsingtaobeer.com. Archived from the original on 2007-03-19. Retrieved 2012-11-07.
  10. "Profile: Tsingtao Brewery". Thechinaperspective.com. Archived from the original on 2012-05-12. Retrieved 2012-11-07.
  11. Yang, Zhiguo (April 2007). "This Beer Tastes Really Good': Nationalism, Consumer Culture and Development of the Beer Industry in Qingdao, 1903-1993". The Japanese Historical Review. 14 (1): 29–58.