On August 28, with the Pearl River Brewery (002461. SZ) disclosing its interim report performance, the interim reports of Top 6 of China Brewery have been disclosed. Budweiser Asia Pacific (01876. HK) became the company with the largest decline in revenue and net profit among the top 6 beer companies, with -8.06% and -24.4% respectively. Chinese beer is an industry monopolized by giants, with the top 6 beer companies having a market share of over 90% in the past three years.
The Chinese market dragged down performance, causing Budweiser Asia Pacific to lose its position as the industry's top revenue leader and be surpassed by China Resources Beer (00291. HK). The revenue of China Resources Beer and Budweiser Asia Pacific were 23.942 billion yuan and 22.275 billion yuan respectively, with net profits of 5.789 billion yuan and 2.905 billion yuan, respectively.
The Chinese market is Budweiser's largest market in the Asia Pacific region. In 2024, the Chinese market contributed over 70% of Budweiser Asia Pacific's revenue. In the first half of 2025, the sales volume in the Chinese market decreased by 8.2% year-on-year, and the net income decreased by 10.2% year-on-year. However, the decline in its Chinese market is not the first time, with sales and revenue both experiencing a decline of over 10% in 2024.
During the earnings call, Cheng Yanjun, CEO and Co Chairman of Budweiser Asia Pacific, stated that in the second quarter, Budweiser Asia Pacific's sales in China did not reach the industry average due to weak performance in key markets and channels.
Although we cannot speak for the entire industry, we have indeed seen a slowdown in the catering industry in the second quarter. In provinces where we cover a wider range, this impact is more pronounced and continues into the beginning of the third quarter. Cheng Yanjun believes that this impact will continue into the second half of the year.
In February of this year, Budweiser Asia Pacific announced that Cheng Yanjun, the Global Chief Supply Chain Operations Officer, would assume the position of CEO and Co Chairman of Budweiser Asia Pacific from April 1st, succeeding Yang Ke who had been in charge for 7 years.
During the earnings conference call, Cheng Yanjun said that Budweiser Asia Pacific will accelerate the expansion of non ready to drink channels. Ready to drink channels refer to restaurants, nightclubs, KTVs, and other channels, while non ready to drink channels refer to shopping malls, e-commerce, and other channels. In the past, Budweiser Asia Pacific's channel advantage was in its ready to drink channels, especially in coastal areas such as Guangdong and Fujian, which contributed to its main sales in the Chinese market.
Compared to the industry level, the proportion of non ready to drink channels in Budweiser China is still relatively low. Ignacio Lares, Chief Financial Officer of AB InBev Asia Pacific, said that currently, non ready to drink channels account for about 50% of AB InBev's business in China, with an industry level of about 60%. He also revealed that in the core market of Guangdong, non ready to drink is the fastest-growing channel, but Budweiser Asia Pacific's channel expansion and execution in this market are lagging behind.
Ignacio Lares said that Budweiser Asia Pacific is developing new primary and secondary wholesalers to cover more sales points. But this requires time, whether it is recruiting wholesalers or cultivating their operational capabilities, it needs to be gradually promoted.
Zhao Chunwu, Executive Director and President of China Resources Beer, said during the earnings call that traditional catering, retail, KA (large supermarkets), and nightclubs are the four most important traditional channels in the beer industry. But in recent years, new retail has rapidly emerged, including e-commerce and instant retail. Although these two lines have a small base, they are growing rapidly, with an annual growth rate of 30% or even high double digits. For beer, instant retail is an important fast-moving consumer channel that attracts consumers and can play a role in attracting traffic. Therefore, China Resources Beer actively strengthens cooperation with leading enterprises.
In the easy open end beer industry, China Resources Beer has taken the lead in reaching strategic partnerships with platforms such as Alibaba, Meituan Flash Purchase, JD.com, Ele.me, and Waima Waimai. In the first half of 2025, the overall gross merchandise volume (GMV) of online and instant retail businesses increased by nearly 40% and 50% year-on-year, respectively.
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