China Resources Beer sees profits rise 29% in first half

China’s biggest brewery, China Resources Beer (Holding) Co Ltd, posted a 29% increase in profits to RMB 1.51 billion (US$220.66 million) during the first half of the year, thanks to higher beer prices and increased sales of premium brands.

The company, which owns the world’s biggest beer brand, Snow, saw its average selling price increase by up to 13%, compared with the same period a year earlier, amid sales growth in mid-range and premium beers, Reuters reported.

Earlier this month, Dutch beer giant Heineken confirmed rumours that it was acquiring a 40% stake in China Resources Enterprise, the parent company of China’s largest brewer, for HK$24.4 billion (US$3.1 billion).

The buy-up could help the company to grow its premium beer sector.

“This long-term strategic collaboration will provide an important strategic opportunity for the group to strengthen its presence in the premium beer market in China,” company chairman Chen Lang said.

Its overall beer volume sales dropped 1.5% to 6.2 million litres during the first six months of the year, in line with the country’s overall beer landscape, where sales volume has been declining each year since 2013.

The premium sector however has bucked the trend and has been growing by double digits.