“Among the national beer listed companies that have released their 2020 annual report, Chongqing beer is the only one that has achieved growth in sales volume, revenue and profit.” Li Zhigang, President of Chongqing beer and President of Carlsberg China, said at today’s performance meeting.
Recently, Chongqing beer and Carlsberg completed the reorganization of the first annual report. According to the data, the company’s beer sales will reach 2423600 kiloliters in 2020, with a year-on-year increase of 3.30%. Last year’s revenue and net profit attributable to shareholders of listed companies were 10.942 billion yuan and 1.077 billion yuan, with a year-on-year growth of 7.14% and 3.26% respectively.
Li Zhigang, President of Chongqing beer and President of Carlsberg China, was present at today’s performance meeting
During the communication with snack agents before the performance meeting, Li Zhigang, who took over the post of president of Chongqing beer at the end of last year, also responded for the first time to the changes after the restructuring of the two companies, the prediction of cost pressure and price increase, high-end planning and other hot issues.
Next, please see the live news sent back by the snack agent.
“The room is open”
The restructuring of Carlsberg and Chongqing beer can be traced back to 2013. That year, Carlsberg launched a tender offer to Chongqing beer, and promised to inject its Chinese assets and business into Chongqing beer by 2020 at the latest to solve the problem of horizontal competition. At the end of last year, Chongqing beer completed a major asset restructuring with Carlsberg, thus becoming the only platform for Carlsberg to operate beer assets in China.
“Carlsberg and heavy beer are all family. Before the reorganization, they were like living under the same roof and operating in different rooms. Now that the room is open, it is basically more smooth.” Li Zhigang told xiaoshidai.
An obvious change brought about by this reorganization is the structural adjustment“ Some regions used to have two (Sales) teams, but now they have become one team, but this is only limited to a small number of regions, such as Sichuan and Hunan. ” Li Zhigang said.
Another change is to simplify the decision-making process“ In the past, if we wanted to produce some beers outside Chongqing, we had to pass the approval of the general meeting of shareholders and discuss all aspects of OEM. Now that we don’t have them, we can respond immediately. ” He preached.
In Li Zhigang’s view, the restructured Chongqing beer can make full use of the resources at hand and help Carlsberg group further implement the “sail 22″ strategy in China“ Whether it’s the big city plan or the expansion of new channels (such as e-commerce and o2o), our pace is the same. ” He stressed to xiaoshidai that this reorganization is not a sudden combination of two companies without intersection.
Source: Chongqing beer 2020 Annual Report
When it comes to the core competitiveness of Chongqing beer after restructuring, Li Zhigang’s answer is: strong brand mix. Xiaoshidai learned that there are 12 brands under Chongqing beer, including six local strong brands such as Wusu, Xixia, Dali, Fenghuaxueyue and jinga, and six international brands such as Carlsberg, Lebao, Kaixuan 1664, Greenberg, Brooklyn and xiarifen.
Li Zhigang believes that due to the different positioning of the above brands, there is no problem of mutual cannibalism at present, and the rich brand matrix can also meet the needs of different scenes. For example, the “music style” music fort can match scenes such as singing K, while the French style 1664 mainly focuses on bars and other occasions.
In the context of China’s increasingly high-end trend of beer, Chongqing beer, which has been blessed by many international brands, also has more “ammunition”.
At present, Chongqing beer products are divided into three grades according to the price: the top grade is more than 10 yuan, and the representative brands are Wusu, Carlsberg and 1664. 6-9 yuan as the mainstream, mainly Le Bao, Chongqing, Dali. Less than 6 yuan is economic, including mountain city, Tianmu Lake, etc.
Today, xiaoshidai learned from the performance meeting that in 2020, its high-end, mainstream and economic products account for 19.4%, 60.2% and 20.4% respectively. Among the three grades, top grade was the only product with year-on-year growth in sales last year, with a growth rate of 30.4%.
“Relatively speaking, there are more wine over 10 yuan, and the growth is faster.” Li Zhigang said that high-end beer still has a lot of room for improvement in China. At present, the proportion of high-end beer in foreign mature market is about 30% ~ 40%, while the proportion of Chinese market is about 15%.
CMB international has pointed out that the main growth power of China’s beer industry comes from the high-end consumption. In 2018, China’s high-end and super high-end beer sales only accounted for 16.4%, far lower than 42.1% and 25% in the United States and South Korea. China’s high-end and super high-end beer sales are expected to grow by 8.5% annually from 2018 to 2023.
As for how Chongqing beer should seize the opportunity of high-end, Li Zhigang thinks that first, it can expand its high-end product portfolio. For example, its high-end brands 1664 and summer fun have introduced more new flavors. Second, in the mainstream level of the layout of higher price products, such as Chongqing brand launched a single bottle of 8 yuan alcohol wheat.
It also emphasizes that while catering to the high-end trend, it is equally important to do well in the mainstream level“ The beer market is like a pyramid. High end is the top level, and it’s mainly in the mainstream. So don’t say that the mainstream doesn’t matter, it’s a large volume. ” Li Zhigang said.
At present, the rising price of raw materials seems to have spread to the beer industry.
“The price rise of raw materials is something we are also judging at present. It seems to be a trend, especially in the next year, there will be great pressure.” Li Zhigang told xiaoshidai.
So, does Chongqing beer have a price increase plan in the near future? In this regard, Li Zhigang said that the company has not made any price increase plan at present. In the future, it will consider factors such as the overall market trend and the negotiation results of next year’s raw material prices.
“ The way we deal with it remains the same. ” Li Zhigang said, “first of all, we will consider improving efficiency to offset some. Second, we will optimize the product structure. Third, we will consider the possibility of price increase.”
In the exchange, he also said that compared with the rising cost, the pressure of Chongqing beer is more on how to maintain high growth“ Our focus on listed companies is to return to the fundamentals, that is, to do a good job in business, improve profits and manage cash flow well. ” Li Zhigang said that he has a “cautious, optimistic and positive” attitude towards development in 2021.
Looking forward to 2021, Chongqing beer pointed out in its annual report that it plans to achieve the growth of the number of units in beer production and sales, and the growth of the number of high units in revenue“ At the same time, we expect that this year’s marketing spending will return to normal and be higher than that in 2020. ” Li Zhigang added at the meeting.
He also said that in order to achieve the business goal of 2021, Chongqing beer will continue to promote the intensive cultivation and expansion of the “Yangfan 22” project, based on the diversification of the company’s product structure and brands after the asset restructuring, and relying on the brand combination of “international high-end brands + local strong brands”, promote the high-end products and the continuous innovation of the sales mode.
“We will continue to further promote the development of the company from two aspects.” Li Zhigang said that in addition to continuously promoting the high-end and seizing the high-end market share, Chongqing beer will adjust the plans of big cities in the future, promote the rapid development of emerging channels, build a more perfect and more yuan channel structure through the investment of key provinces and cities and the establishment of distribution network, and promote the sales growth.
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