CRAFT BEER IN CHINA

British Craft Breweries Export Project/iNet

• Developing a framework for breweries to export to China

• Our objective - to deliver a plan that identifies a structured approach to the product, process and marketing required to sell craft beers to China.

British Craft Brewers Export Project Partners

• Clements Marketing Ltd, Nottingham. Project management, business plan, branding, marketing and commercial issues

• Thornbridge Brewery, Bakewell. Key lead brewer being Interested to sell into China

• University of Nottingham Food and Biofuel Innovation Centre in the School of Biosciences. Shelf life, Product groupings and knowledge of brewers. List of export ready brewers

• UKTI: Market research, regulatory aspects, shipping, import regulations, packing and labelling.

• Consult: Food and Drink Export Federation, China-Britain Council. Asia Business Centre, British Pub and Brewery Association

Project Deliverables

Research

China Market – market conditions, demand, demographics and taste,.

current suppliers and distribution options

Product Development

List of export ready brewers. Which beers? Product concept, technical

and regulatory issues

Brand Development

Brand concept and identity

Sales and Marketing

Marketing plan: packaging, promotion, event, website, sales channels

Logistics

Shipping, import agents, regulations, customer service

Business Case Development

Costing model – cash flow

BRITISH CRAFT BEERS

Offering the finest new Craft Beers from the UK to China.

A range of high quality beers, combining a strong heritage with fresh and exciting flavours for the premium market.

Chosen Breweries for China Sampling

Chinese Beer Market

• China is the largest beer market in the world.

• Worth 450 billion litres per year – 25 % of global beer consumption.

• Market value of RMB 454 billion – a 63% increase over the past 5 years.

• Premium products occupy 15% market share.

• Asian-Pacific region of the premium beer market has a capacity of 13.5 million kiloliters.

Chinese Beer Domestic Brands

Include:

• Snow • Budweiser • Corona • Tsingtao • Harbin

Price point in supermarkets: 4-10 yuan (40p to £1)

German Imported Beers

Paulaner, Wittinger, Erdinger,Benediktiner etc. Price: Supermarkets – 15-20 Yuan Bars – 30-70 Yuan

Belgian Imported Beers-Duvel, Hoegaarden, Chimay

Fruit Beers—Lindemans Framboise and Kriek

UK Imported Beers

• Greene King • Fullers • Wells and Young • Brewdog • Samuel Smiths

Price: Supermarkets – 11-20 Yuan

Beer Import Legislation

• When importing beer into China, there are in total of eight steps. These are summarised as follows:

1. Registration of the Exporter with the Certification and Accreditation Administration of the People’s Republic of China (CNCA)

2. Recording of labels with the local Entry-Exit Inspection and Quarantine Bureau

3. Receipts Examination before beer arrival at port of entry

4. Customs Declaration

5. Examination of Product and its Release

6. Customs Clearance

7. Legal Commodity Inspection

8. Expense settlements for the importation process

Beer Labelling regulations in China

• Name of the Beer in Chinese

• Ingredients list including which can be titled as Raw materials or Raw and auxiliary materials (in Chinese). The list of ingredients must appear as percentages in descending order of content. Processing aids should be excluded from the ingredient list.

• Alcoholic Strength; including Alcoholic percentage

• Original Malt Extract Content; with unit symbol of Plato (°P)

• Name and address of manufacturer and distributor;

• Date labelling; must include both the date of packaging as well as durability information; the date should be ordered as year, month and date (2013/03/05, hence illustrating the beer

Imported Beers-Labelling Regulations

Beer brands taken to China for tasting sessions and samples

Chengdu tasting session Ningbo tasting session

Chengdu tasting session—Peak Ales-Gardeners Tap

Chinese Beer Tasting Feedback

• British beers are special and innovative.

• High alcohol content: Chinese people don’t like to get drunk in front of their families.

• Ales were too bitter (hoppy in after taste).

• Prefer the easier drinking more balanced ones.

• Meantimes bottles thought attractive and were popular.

• Thwaites Tavern Porter bottle looked distinguished

• Females found the alcohol levels too high, but loved the fruit beer.

• The milder dark beers were liked universally

Preferred beers were: • Peak Ales Gardener’s tap • Windsor & Eton Windsor knot • Thornbridge Wild Raven

• Thwaites Tavern porter • Thwaites Wainwright • Thwaites Nutty black

Is there a market for British Craft Beer in China?

• Yes, the time is right but things are moving very fast. • The Belgians and Germans have a strong foothold but have created the market. British have

no image.

• Consumers: • Expats and western visitors, business men. • Young educated wealthy Chinese • Aspiration middle class • Women (with food?) • Connoisseur drinkers

• Sell to: • Hotels, Bars, Restaurants • Smaller supermarket chains • Companies-Corporate Gift packs

• Target Market---- the red wine drinkers

Selling Platform for British Craft Beer in China?

• British brewing tradition

• Innovative new flavours

• Premium British image?

• Quality and provenance assured.

• Natural ingredients.

• Different flavours for different food

• Safe and hygienic products

Breweries Readiness for Export

• Clear beers with a 12 month shelf life

• Sufficient production capacity

• In-house or bulk bottling: 330ml/500ml bottles

• Regular and flexible production schedules of 330ml bottles

• Willingness to give free samples and marketing materials

• Keen Prices

Further Information

• Come and talk to British Craft Beers/ Nottingham University Jubilee Campus

• Get a copy of the Clements Marketing iNet report: British Craft Breweries Export Project Sept 2013.

Contact us:

• www.clementsmarketing.com

• Tel: 0115 82 32772

• Mob: 07967337404