E-Malt.com News article: China: More brewers hiking beer prices

Beer drinkers in China may soon have to pay more to raise their glasses because major brewers, including Suntory and Snow Beer, are considering plans to raise prices in response to higher costs of raw materials, China.org.cn communicated on March, 25.

As already reported, China Resources Enterprise, which produces China's top beer brand Snow with SABMiller Plc, said its beer division will increase average selling prices to cover the increase in the costs of raw materials and packaging materials.

Japan's Suntory has recently issued a notice to retailers informing them that it also proposed to increase prices of some of its products by an average 5.6 percent, according to Shanghai's NGS supermarket.

Its six-355-milliliter-can pack of Suntory Qingshuang will be sold at 13.20 yuan (US$2), up from 12.50 yuan, while a four-500ml-bottle pack will see its price increase to 13.30 yuan from 12.80 yuan.

An official surnamed Gan from NGS said other mainstream brewers, including Chinese brand Reeb, Tsingtao and United States-based Budweiser, may also hike their prices this year.

The rising costs of raw materials have forced beer makers to raise prices as they see their profits being eroded.

Hu Chunxia, an analyst at Guotai Junan Securities, said prices for wheat, the major raw material in beer making in China, have risen from US$250 per ton in September to about US$380 per ton now due to a tight supply worldwide.


25 March, 2011