E-Malt.com News article: China: Beijing Yanjing Brewery raises beer prices to cover higher expenses during the slow season

Beijing Yanjing Brewery raised the price of its beer products in Beijing by more than 3.3 yuan per case and raised the ex-factory price of 10-degree Yanjing Fresh by between 16 percent and 18 percent per bottle due to rising costs, nbd.com.cn reported on January, 18, citing an unnamed distributor in Beijing.

Yanjing Brewery raised prices now during the slow season to cover higher expenses, such as rising transportation and raw material costs. Prices of agricultural products rose worldwide in 2010, including the price of barley, which is a key ingredient used in beer production.

According to China Merchants Securities, the price increase will have little impact on sales volume, since Yanjing Brewery already has more than a 80 percent market share in Beijing, Guangxi province and Inner Mongolia.

Beijing Yanjing Brewery issued 1.13 billion yuan in convertible bonds in October. The bonds can be converted into common shares at 21.86 yuan per share with the conversion period beginning on April 15.

The company also plans to expand its output by three million tons during the 12th Five-Year Plan period, of which one million tons will be gained through acquisitions.

China Merchants Securities predicted the beer maker's earnings per share (EPS) from 2010 to 2012 will be 0.65 yuan, 0.85 yuan and 1.07 yuan per share.


19 January, 2011