It just started in 2021. Budweiser China hastened to speed up its deployment in the coastal market.

Today, Budweiser Asia Pacific Holdings Co.
, Ltd.
(hereinafter referred to as "Budweiser Asia Pacific") announced its annual results as of December 31, 2020.

Reported hundred WIA too total sales decreased 12.

1% in the year 2020.
In the fourth quarter of 2020, sales decreased by 2.

Reported hundred WIA too total sales decreased 12.

Budweiser Asia Pacific stated in its financial report that last year’s sales performance was directly affected by the epidemic’s restrictions on sales channels, “especially high-end catering channels where we have a stable position in major markets”.

Snack Foods learned that at the subsequent performance meeting held in front of analysts, Budweiser Asia Pacific CEO and Co-Chairman Jan Craps and Budweiser Asia Pacific CFO Guilherme Castellan further interpreted the performance of the Chinese market, products and Digital and other strategies, and talked about the Spring Festival stall sales just past.

Let's take a look together.

Recovery momentum

Recovery momentum

Focus on the Chinese market.

The financial report shows that for the full year of 2020, Budweiser China’s revenue fell 11% due to a 10% drop in sales and a 1.

1% drop in revenue per hectoliter.
Normalized earnings before interest, taxes, depreciation and amortization fell by 20.
1%.

Among them, from February to April 2020, high-end catering channels face the most stringent restrictions related to the new crown epidemic.

The performance during the period accounted for more than 100% of the decline in sales, revenue, and normalized profit before interest, tax, depreciation and amortization in 2020.
"This means that our business performance in the remaining months is very healthy.
" Yan Ke said at the meeting.

In the fourth quarter, Budweiser China recorded a sales growth of 0.

9% despite the decrease in channel inventory due to the late Chinese New Year in 2021.
Driven by continued high-end (partially offset by the negative impact of channel inventory reduction), revenue increased by 1.
3%, revenue per hectoliter increased by 0.
4%, and normalized earnings before interest, taxes, depreciation and amortization fell by 6.
9%.

Yang Ke, CEO of Budweiser Asia Pacific (profile picture)

"In China, in addition to our loss from February to April 2020, which was mainly due to the impact of the epidemic on the catering channel, our annual sales, revenue and market share have all increased from the previous year.

" Yang Ke said at the meeting that according to Nielsen data, Budweiser China's market share has increased in important home and e-commerce channels.

Xiaoshidai noticed that from February to April 2020, Budweiser China lost a large amount of market share mainly due to the impact of the epidemic on its catering channels, but continued to increase its market share in subsequent quarters.

"We achieved sales and market share growth in the fourth quarter of 2020, an estimated increase of 140 basis points.
Therefore, our loss of market share in 2020 has been significantly reduced to 55 basis points.
" Yang Ke said.

It is worth noting that, according to Budweiser China’s disclosure, effective commercial actions have allowed it to record a “new summer sales high over the years” from May to August 2020.

Second from left: Zhou Zhen, the new chief sales officer of Budweiser China (profile picture)

In addition, Xiaoshidai noticed that, according to Yan Ke's disclosure at the meeting, Budweiser Asia Pacific newly appointed Luke Zhou (Zhou Zhen) as the chief sales officer of Budweiser China.

"Luke is Chinese.
He has worked in our company for 12 years and has rich experience.
We are very excited that he can run the largest piece of business in our Asia-Pacific region.
" Yang Ke said.

According to the information read by Snack Agent, Zhou Zhen had served as Vice President of Budweiser Asia Pacific Strategy and Business Transformation, Vice President of Business of China Business Unit, and President of Budweiser China South China Business Unit.

Three strategies

Three strategies

Yang Ke said that Budweiser China continued to invest in its business strategies last year: high-end, business expansion and digital transformation.

In terms of high-end, in China, the high-end portfolio led by Budweiser recorded a mid-single-digit growth in the fourth quarter of 2020.
Xiaoshidai noticed that last year, the company's high-end beer brand still did a lot of publicity activities, including cooperating with Messi to celebrate his scoring record and celebrating the 120th anniversary of Harbin Beer, the oldest beer brand in China.
"Its high-end beer Harbin 1900 also recorded strong sales this quarter.
" The company said.

Budweiser and Messi's limited bottle of beer

As for Budweiser China's ultra-high-end portfolio, according to the financial report, it will perform strongly in the fourth quarter of 2020.
“We estimate that in 2020, Corona and Foca will still be the top-selling super-high-end beer brands and wheat beer brands, and Lanmei will continue to maintain a strong momentum and record double-digit growth.
” The company said, in addition, craft brewing The beer mix recorded high single-digit growth in 2020 and strong double-digit growth in the fourth quarter.

"In terms of adjacent products, we tried to launch a number of innovative products, such as Mike's Hard Lemonade, to prepare for further high-end.
" The company said.

Budweiser China's new product Mike's Hard Lemonade launched last year

In addition, Xiaoshidai noticed that Castellan mentioned at the meeting that last year, Budweiser China listed its well-known high-end beer brand Bud Light (Chinese name: Budweiser Xinlan) in Guangdong, which helped to further promote its presence in South China.
The growth of regional high-end beer business.

In terms of product innovation, when answering questions from analysts, Yanke also mentioned the alcohol-free but beer-flavored beverages that are emerging in many mature drinking markets.
Budweiser has also launched such products in other markets.

"In China, we expect that there will be such an opportunity in the future.
This is just a matter of launching at the right time.
" He said that at present, Budweiser China’s product innovation focus is still on expanding high-end and ultra-high-end product lines.
Many different beer consumption scenarios.
"Our usual approach is to first go on sale in a small range and look at consumers' reactions.
Now e-commerce is also a great platform for testing new products.
"

Budweiser ME3 Fruit Beer

In terms of business expansion, Budweiser Asia Pacific stated that Budweiser China’s customized marketing plans (such as loyal customer programs and cross-category promotion activities) continue to deliver strong performance, especially for chain customers.
In terms of e-commerce, sales continued to record double-digit growth and expanded market share.
"According to Nielsen, our market share ranked first in the beer category in 2020, more than twice the share of the second beer brewer.
"

In terms of digital transformation, Yan Ke mentioned at the meeting that Budweiser China’s multi-channel digital loyalty customer program Budweiser Space Station (BUD SPACE) is one of the strategic initiatives.
“We use this to directly establish stronger relationships with customers and Drive revenue growth.
” According to reports, in 2020, repeated users of the Budweiser space station will increase monthly, and 13 million customers will use it by the end of the year.

In addition, he said that the company uses its internal marketing agency DraftLine to analyze consumption intentions in various markets and determine consumption trends in order to develop effective brand messages and deliver them to specific audiences.
"This allows us to have more flexibility in conducting marketing activities in a cost-effective manner that meets our goals even in the context of the epidemic and changing market conditions.
" He said.

2021 start

2021 start

"In 2020, despite facing major challenges related to the epidemic, our employees will unite to overcome adversity and provide support to the communities where we operate in the Asia-Pacific region.
We are pleased to see that China's business has strengthened and developed since April 2020.
The strong publicity activities for the Spring Festival in 2021 will help the next prosperity and development.
" Budweiser Asia Pacific said today.

Xiaoshidai noticed that when answering questions from analysts later, Castellan mentioned that Budweiser China achieved sales growth in the fourth quarter of 2020, and this good momentum has also continued into the first two months of this year.
"In 2021, we will continue to invest in high-end, commercial expansion and digital transformation, such as expanding our business in other provinces in China.
We believe that growth will be achieved in the next few years.
" He said.

In December 2020 and January 2021, due to sporadic local outbreaks in northern and northeastern China, as a preventive measure, the government encourages people to celebrate the New Year on the spot.
"From a sales perspective, this has a great impact on us (sales in different regions).
" Yang Ke said.

He said that the change in the Spring Festival travel trend has accelerated Budweiser’s business growth in coastal areas in China, such as Guangdong, Zhejiang, and Shanghai.
These areas have many migrants living in these areas.
Business has caused pressure, such as Jilin and Heilongjiang, where people returned to their hometowns to celebrate the New Year in these cities during the Spring Festival for many years.

Yang Ke said that this sales trend is in line with expectations.
"When we saw the trend of population mobility, we quickly adjusted our business investment and successfully launched the Spring Festival activities to lay the foundation for the new year.
Our sales in 2021 have been in line with our expectations so far.
" He said, Budweiser China is in There is a higher-end combination in the coastal areas, which drives strong business performance.

Looking forward to 2021, the beer giant expects that despite the continuing uncertainties brought about by the epidemic, its "strong foundation, prudent strategic focus and effective business actions" will promote continuous improvement of its business in various markets in the Asia-Pacific region.

Source: Snacks Generation

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