Topics: Brewing, United States, Beer Pages: 2 (287 words) Published: October 21, 2014
Tsingtao (China)
Tsingtao Brewery was founded in 1903 by German settlers
in China. After state ownership under Communism,
Tsingtao was privatised in the early 1990s and listed
on the Hong Kong Stock Exchange in 1993. In 2009, the
Japanese Asahi Breweries held 19.9 per cent of the
shares, purchased from A-B InBev (which also sold
the remainder of its original stake – 7 per cent – to a
Chinese private investor). Tsingtao has 13 per cent market
share of its home market but has long had an export
orientation, accounting for more than 50 per cent of
China’s beer exports. Tsingtao Beer was introduced to
the United States in 1972 and is the Chinese brand-leader
in the US market. A bottle of Tsingtao appeared in the
1982 science fiction film Blade Runner. Tsingtao set up
its European office in 1992 and its beer is now sold in
62 countries. The company has described its ambition
thus: ‘to promote the continuous growth of the sales
volume and income to step forward (sic) the target of
becoming an international great company’.
Sources: Ernst & Young, The Contribution Made by Beer to the European Econony, 2009; Euromonitor International, Global Alcoholic Drinks: Beer – Opportunities in Niche Categories, April, 2009; Euromonitor, Strategies for Growth in an Increasingly Consolidated Global Beer Market, February 2010.

1 Using the data from the case (and any other
sources available), carry out for the Western
European brewing industry (i) a PESTEL
analysis and (ii) a five forces analysis.
What do you conclude?
2 For the three breweries outlined above (or
breweries of your own choice) explain:
(a) how these trends will impact differently
on these different companies; and
(b) the relative strengths and weaknesses of
each company.
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