Foreign companies find the going tough in the beer market
The Chinese beer market has not been very kind to foreign companies in recent months. After the initial enthusiasm had evaporated, many companies have been squeezed out by domestic brewer Tsingtao. The problems in the 1.3 billion communist country are numerous: Equipment and raw materials have to be imported at high cost, specialist staff have oftentimes to be paid high incentives to attract them to the country. Five years ago, the situation for foreign companies looked very rosy, as recalled by Tsingtao Vice-Chairman Peng Zuoyi. Apparently, many investors underestimated the high costs, a reason why they had much higher production costs than domestic brewers. In actual fact, the price of foreign brands is oftentimes more than 5 CNY (about 1.
Tsingtao costs only 1 CNY (about 0. A 0..
Select offer and read on
6 print issues