普华永道——Cheers_CDD draft 041203.pptVIP

12/4/03 9:42 Project Cheers Table of Contents 1 - Executive Summary Executive Summary Summary of issues SWOT Strengths Very well established distribution network Opportunities Guangdong market 2 - Beer Market Overview China beer market is expected to grow continuously in the next decade China is the second largest beer market in the world just behind the United States. China beer market has grown steadily at around 5% per annum as a result of economy development and population increase. The growth is projected to continue over the next decade. Savings product (retail price lower than Rmb2 for 640ml bottle) is still the mainstream. Local brewers/brands dominate this segment and the competition is extremely hard. Standard product (retail price between Rmb2 to 5) is expected to be the fastest growing segment. The China beer market has been rapidly consolidating, most of the big local brewers have formed alliances with multinational giants Tsingtao, one of the leaders in China beer market, has started to expand its business through countrywide acquisition 10 years ago. This triggered the consolidation of the whole China beer market. During the past several years, with the increasing involvement of multinational companies, the pace of consolidation has been accelerated, especially in recent three years. In 2003, Interbrew acquired 50% of Malaysian Lion’s interests in 10 breweries in China, Yanjing acquired 38% of Huiquan, making it the single largest shareholder. Carlsberg came back to China market and did a few acquisition. Quite a few other international players also emphasized their China strategy and are actively looking for opportunities. During this consolidation process, most of the big national/regional local brewers have formed alliances with multinational giants and there are not many local brewers left independently. Up to date, only 4 of the top 10 beer groups that have not allied with multinational companies based on public available information,