miss
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.
Questions
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
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.
Questions
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