China Brewing Industry Trend and imported barley demand
Dr Yan Lin Tsingtao Brewery Co Ltd
Feb 24th 2015
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Report Topic
Key messages • China brewing industry overview and trends• China malting industry overview and trends• Imported malting barley demand quantity 、quality and requirement
Aim• Provide a complete understanding of China brewing industry in
recent decade and its demand of imported Malting Barleys
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3
0
1000
2000
3000
4000
5000
6000
2004年 2005年 2006年 2007年 2008年 2009年 2010年 2011年 2012年 2013年
国家统计产量(kL) 行业统计产量(kL)
Production by NBS (kL) Production by CBA (kL)
� In 2013, Beer production reached 46.54 million kL,increased by 5.0%, net increase 2.0 million kL。Per capita consumption was 34.2L,went up 1.4L with 4.3% rate.
� In 2014, latest data from CBA showed the total production went to 49.22 million kL,but production in the second half year continued on decline.
1.China Brewing industry overview and trend
• In 2013 ,Beer sale income was 140.7 Billion RMB,increased by 9.2%. Sale income per kL Beer reached 3074 RMB,went up by 5.1%.
• The total profit and tax went to 28.4 Billion RMB , increased by 5.8%. Tax was 22.4 Billion RMB with 4.3% growth rate .6 Billion RMB profit came true with 11.7% increase rate .Tax per
kL beer increased by 0.4%,but its profit went up with 7.4% rate。
Benefit&Profit
4
No Province Production ( 1000kl) Growth
rate(%)Numbers of brew
1 山东Shandong 5568.44 3.66 23
2 广东Guangdong 4187.51 0.22 6
3 浙江Zhejiang 2863.54 5.58 1
4 河南Henan 2563.83 1.25 14
5 辽宁Liaoning 2469.84 4.60 2
6 四川Sichuan 2457.56 13.30 2
7 黑龙江heilongjiang
2189.77 4.36 8
8 福建Fujian 2017.75 3.74 3
9 江苏JIangsu 1992.46 -2.23 3
10 湖北Hubei 1965.90 0.93 2
+500ml
-500ml
Can
Barrel
others
No companyProduction
(1000 kl)
growthrate(%)
No of
brew
Shareof
market
BrandValueBillon RMB
1 Snow 11710 10.3% 92 23.15% 91.1
2 Tsingtao 8700 10.1% 64 17.19% 180.8
3 AB-inbev 6720 17.7% 42 14.10% Haerbin82.3
4 Yanjing 5710 5.8% 40 12.2% 46.4
5 Carlsberg 2640 / 40 / /
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Top 10 Provinces production in China Top 5 Brewery Companies in China
Beer Products in China
1990
Ranking
mln
hl
2025
Forecast
Ranking
mln hl
1 USA 228.5 1 China 759.2
2 Germany 114.4 2 USA 261.5
3 China 66.6 3 Brazil 180.5
4 Japan 66.3 4 Russia 99.5
5 UK 63.1 5 Mexico 90.7
6 Brazil 58.0 6 Germany 74.4
7 Mexico 37.2 7 India 52.7
8 Russia 33.1 8 Japan 52.4
9 Spain 28.3 9 Vietnam 50.6
10South
Africa22.4 10 UK 40.5
Future Beer Market
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China malting industry used to face challenge to production capacity surplus, higher
dependence on imported barley , unreasonable market share distribution .
4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00
3.68 3.64 3.64 3.68
3.79
3.90
4.02
4.14
3.30
3.40
3.50
3.60
3.70
3.80
3.90
4.00
4.10
4.20
2013 2014 2015 2016 2017 2018 2019 2020
Capacity Demand
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2.China Malting industry overview and trend
• Insert Text here
World Malt Market
No companyProduction(1000 ton)
Number of malts
Share of market
1 Supertime 860 6 21.5%
2 Cofco 740 3 18.5%
3 Beidahuang 300 2 7.5%
4 xingze 240 1 6.0%
5 Chunlei 240 7 6.0%
6 Suken 200 2 5.0%
7 Yanjing 200 2 5.0%
8 Tsingtao 180 4 4.5%
9 Sihai 170 1 4.25%
10 Mogao 120 2 3.0%
Total 3250 4000 81.25%
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Top 10 Malting Companies in China
180
200
220
240
260
280
300
320
Canada MB USD
Canada FB USD
Australia MB USD
Australia FAQ USD
Australia FB USD
Argentina MB USD
Argentina FB USD
German FB USD
EXPORTERS 1.000 t Destination IMPORTERS 1.000 t
Argentina Brazil 350 Brazil 420
Colombia 200 Colombia 280
1.500 Chile 40 Chile 40
Peru 100 Peru 100
Ecuador 40 Ecuador 40
Uruguay 150 Uruguay 150
South Africa 0 Mexico 100
China 200
EU 27/Russia/C Europe 50
long 370
Australia China 1.900 China 2.700
Vietnam / other Asia 130 Vietnam / Taiwan /Philip. 130
2.100 South Africa 30 India 0
long 40
Canada USA 200 USA 200
China 300
900 Colombia 80 South Africa 60
Mexico 20
South Africa 30
long 270
EU 27 China 300 Russia / Kazasthan / Ukraine 150
South Africa 0 Central Europe & others 0
800 North Africa 15
Brazil 70 Turkey 100
Turkey 100
Russia 150 North Africa 15
others 10
long 155
SUPPLY 5.300 DEMAND 4.485
SURPLUS/DEFICIT +815
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3. China demand of Imported barley
Malting Barley Trade worldwide World Barley Prices crop 2013 - USD
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1 23
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Import Barley in China from 2012 to 2013
国家和地区Country
2012 2013 进口量增长(%)Import
increase (%)
价格增长(%)price
increase (%)
进口量(吨)Import (Ton)
单价USD/ton
比例 per cent(%)
进口量(吨)Import (Ton)
单价USD/ton 比例 per cent
(%)
澳大利亚Australia
2078353 298.89 82.2 1759337 334.17 75.3 -15.35 11.80
加拿大Canada
313786 355.92 12.4 376887 376.32 16.1 20.11 5.73
法国France
23017 340.76 0.9 133294 336.21 5.7 479.12 -1.33
阿根廷Argentina
112500 359.96 4.5 63551 364.46 2.7 -43.51 1.25
丹麦Denmark
2147 374.65 0.1
蒙古、美国Mongolia;
USA60 423.08 0.0
合计 Total 2527655 309.07 100.0 2335216 341.95 100.0 -7.61 10.64
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China brewery industry reliance on imported barley
Imported barley in China 2013 per month
5000
55000
105000
155000
205000
255000
305000
355000
大麦进口量[T]
200.00
220.00
240.00
260.00
280.00
300.00
320.00
340.00
360.00
380.00
Imported barley price in China 2013 per month
Imported barley quantity (Ton)
Imported barley price (USD)
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Import Barley in China on April 2013 and 2014 crop
国家和地区Pays
2013.4 2014.4 进口量增长(%)Import
increaserate
价格增长(%)price
Increaserate
进口量(吨)
Import (T)
单价USD/Ton
比例 per cent(%)
进口量(吨)Import (T)
单价USD/ton
比例per cent(%)
澳大利亚Australia
361550 342.92 63.8 1328016 287.61 92.4 267.31 -16.13
加拿大Canada
138273 380.90 24.4 67048 345.36 4.7 -51.51 -9.33
法国France 3001 366.00 0.5 6358 360.93 0.4 111.85 -1.39
阿根廷Argentina
63551 364.46 11.2 30740 340.11 2.1 -51.63 -6.68
丹麦Danmark
3967 323.23 0.3
美国 USA 0.1 0.0 1337.7 262.59 0.1
合计 Total 566376 354.74 100.0 1437467 291.83 100.0 153.80 -17.73
4738761566
139708
57708
110129
80000
121000
0
20000
40000
60000
80000
100000
120000
140000
160000
2009y 2010y 2011y 2012y 2013y 2014y 2015y
Tsingtao Australian Barley purchase metric ton
Australian Barley Varieties & Quantity by Tsingtao
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Varieties 1 2 3 4 5 6
Leading Baudin Bass Buloke Hindmarsh Vlamingh Gairdner
Purchased Scope Commander Flagship Stirling Hamelin Non Grade 1
Evaluated Westminister La Trobe Flinders
observation Grange Henley Navigator Skipper others
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Australian Barley Pre-sprout Damage and Protein Problem
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Australian Barley Grade 1 Specification for TsingtaoItems unit Grade 1 Non-Grade1
Color、Smell Uniform light golden
yellow fresh no off flavor
Mold % ≤4 ≤5
Blight % ≤3 ≤4
Germinated % ≤1 ≤1
Heat Damage % ≤0.5 ≤0.5
Frost % ≤2 ≤4
Immature % ≤1 ≤1
Peel&Broken % ≤3.0 ≤4.0
Items unit Grade 1 Non-
Grade1
Moisture % ≤12.0 ≤12.0
Germination % ≥96 ≥95
Protein % 10.5-12.5 10.5-13.0
Thousand weight g ≥41.0 ≥39.0
Test weight Kg/hl ≥68.0 ≥66.0
Plumness(≥2.5mm) % ≥86.0 ≥84.0
Thinness(≤2.0mm) % ≤3.0 ≤4.0
Foreign Matter % ≤1.0 ≤1.0
Variety Purity %≥96 ≥95
Water Sensitivity % ≤15 ≤15
Pre-Sprout RVA RVU ≥130 ≥130
Iitems Performance
Higher Protein(11.5-12.5%) Foam quality improve
Higher Extract Save grain、 higher utility
Higher DPE No addition extra enzyme
Higher Fermentation Good Yeast performance
Lower Glucan (80-120mg/L) Save Filtering time 、Body mouthful taste
Lower Lox Good Freshness
Lower boiled color Light beer color
Malting Process Balance between Protein & B-Glucan modification
Filtering Save time
Resistant to Pre-sprout Good storage
Balance & harmonious taste Similar to Canadian Copeland 17
Our expectation for Australian Barley Quality
Beginning1994-2000R&D CenterNational technical center
Development2001-2009Mobile center for post doctoral research
CNAS China National
Accreditation Service for
Conformity Assessment,
Qingdao Key Lab
Promotion2010--so far
State key Lab of beer fermentation
Over 40 million RMB
facilities & instruments
BRM analysis &research platform
BRM quality control & applied research
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� Identification of Barley 、Malt & Hop Variety &Purity and their quality control by DNA molecular Analysis
� Technical Evaluation of Malting barley 、Malt &Hop varieties &their performance � Study on Malt &Hop varieties recipe、 brewing performance and malty and hoppy
flavor characteristic� BRM Microbiological effects on MB quality 、malting &brewing performance� Barley pre--sprout damage effects on storage quality、 malting &brewing
performance� Study on DPEs and LOX of malting &mashing and their control � Research on Malty flavor and high-malty flavor malting process
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Topic applied research of Brewing Raw Materials
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New Variety Evaluation Principle
Core
Malt Recipe Based on current
purchase demand
Based on future
purchase demand
Uniform intended Variety
Malting&Brewing Test
Purchase list updates
MB accreditation
Micro-malting&brewing
plant-scale test list
Barley:preferred varietiescommercial&industrial
Malt:not in Tsingtao purchase list
Recognized & testedpotential varieties in
advance、
Barley Variety Choice 1.Advantage variety with Large scale planting 2.Potential variety with 5% planting percent3.Commercial variety with strong recommend4.Market supply 20
QA
Name: Yan LinPosition: Director of Brewing Raw Materials Lab Organisation / address: Tsingtao Brewery Co.,Ltd / R&D Center602 Tailiu Road Qingdao Shandong PR China 266100Contact:T +86 532 85706627 F +86 532 [email protected] [email protected], Website: http://www.tsingtao.com.cn
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