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HONG KONG: A CRAFT BEER MARKET RISES IN THE EAST
LAURIE GOLDBERG
MANAGING DIRECTOR, AMERICRAFT IMPORTS
+852.9311.3082
HONG KONG
o Special Administrative Region of
the People’s Republic of China
o Population: 7+ million
o 500,000 expatriates; 60,000
Americans
o Official Languages: English,
Chinese
o One of the world's leading
trading and financial centers
o Approximately 13,250 eating
establishments; over 2,000
Western restaurants
~82 million liters (21.7 million gallons) in 2010
ALCOHOL CONSUMPTION
BEER (88%)
WINE (9%)
SPIRITS (2.5%)
OTHER (0.5%)
BEER SALES
OFF-PREMISE VS. ON-PREMISE:
VOLUME 2006-2011 (million liters)
Million
liters
2006 2007 2008 2009 2010 2011
Off-
premise
65.6 64.2 68.9 70.3 72.1 72.8
On-
premise
87.9 88.4 84.2 79.8 80.8 83.5
MACROBREWS: MAJOR MARKET SHARE
Major brands consumed in Hong Kong: Heineken, San Miguel, Blue Girl,
Carlsberg, Budweiser, Tsingtao, Hoegaarden, Asahi, and Guinness.
Hong Kong MARKET SHARE (% by Global Brand Owner)
BRAND 2005 2006 2007 2008 2009 2010
San Miguel Brewery, Inc. -- -- -- -- 36.2 35.7
Jebsen & Co., Ltd. 14.0 15.0 15.9 16.8 17.8 17.8
Carlsberg A/S 12.1 12.9 9.9 9.7 9.7 9.5
Heineken NV 9.4 9.7 9.1 8.9 8.0 8.3
Tsingtao Brewery Co., Ltd 3.5 3.1 4.0 4.2 4.1 3.9
Anheuser-Busch InBev NV -- -- -- 3.4 3.1 3.6
Modelo SA de CV, Grupo 3.2 3.2 3.4 3.3 2.6 2.3
Fujian Huiqian Brewery Group -- -- -- -- -- 1.8
Diageo Plc. 1.6 1.6 1.7 1.7 1.7 1.8
S&P Co. 2.9 2.4 1.9 1.8 1.3 1.3
Beijing Yanjing Brewery Co., Ltd. 6.2 5.6 4.8 4.6 3.3 1.2
SAB Miller Plc. 0.6 0.5 0.6 0.5 0.4 0.4
San Miguel Corp. 30.7 30.5 31.3 31.0 -- --
InBev NV SA 2.9 2.3 2.2 -- -- --
Anheuser-Busch Cos. Inc. 3.0 2.0 1.6 -- -- --
Others 10.0 11.1 13.6 13.0 11.7 12.5
HOWEVER:
o Large, growing segment of affluent
consumers.
o Hong Kong follows US and European
consumption patterns (e.g.,
premiumization).
o Hong Kong buyers of craft beer:
o Status-conscious and affluent;
o 20-35 age segment;
o Asian and Western;
o Concerned with quality brand image.
o More craft beer selections.
o More choice/educational
opportunities.
o Several new craft beer
importers started in 2012.
o Numerous 2012/2013 events
aimed at promoting craft beer:
- International Beer Awards (Sept. 2012)
- Great American BBQ Event (Nov. 2012)
- Beertopia Hong Kong (2013 Date TBD)
- AmCham Events
EMERGING MARKET:
The Globe, a beer bar originally
started in 1995, moved to a larger
location in 2010, and offers an
extensive selection of craft beers
from around the world
INCREASED MEDIA ATTENTION
“In a city more
accustomed to wine
(importing it is duty-free)
and baiju (a potent
Chinese liquor often
drunk on special
occasions), a small group
of craft beer devotees is
spreading the word that
not all brews are created
equal”
-- Hana R Alberts
April 2012, BBC TRAVEL
“It's easier than ever
to get top-notch
brews, thanks to a
growing number of
beer bars, importers
and retailers
dedicated to quality”
--Christopher DeWolf
April, 2012
CNN GO
BEERTOPIA 2012
o Hong Kong beer festival held on April 28, 2012
o Featured craft beer tastings and educational lectures on
beer tasting, home brewing, and beer and food pairing
Beertopia, April 2012
BEERTOPIA 2012
o Featured craft beers from
the US, UK, Hong Kong,
Belgium, Japan, Australia,
New Zealand, and Germany
o Event sold out
o Over 1,700 people attended
o International news coverage
o To be an annual event
BENEFITS OF EXPORTING TO
HONG KONG
o Impacts tastes across Greater China
o Slow and steady market growth
o Excellent brand development and marketing
opportunities
“… Brickhouse in Lan Kwai
Fong is packing crowds in
with tacos and beer”
--Discovery Magazine, September 2012
Featuring Lost Coast Brewery’s
Great White
LOGISTICAL & MARKETING
CHALLENGES
o Limited storage space, most bars and restaurants don’t
have cold storage
o Personal relationships key
o Large restaurant groups control entry into many
bars/restaurants
o Exclusive sales contracts
o Service culture differs from the US, and most servers not
knowledgeable about craft beer
o Gray market/parallel imports
HOW CAN YOU OVERCOME THESE
CHALLENGES?
o Work with an importer/distributor who emphasizes quality control, craft beer education and training, and marketing
o Refrigerated containers
o Ship smaller quantities in consolidated containers while your distributor builds your brand
o Work with importer/distributor to identify and prevent gray market/parallel imports.
IMPORT REGULATIONS
o NO TAX on beer being imported
into Hong Kong (tax abolished in
2008)
o No certification requirements
o “Best Before” date must appear on
beers whose alcoholic strength is
between 1.2%-10%
o Compared with China, Hong
Kong’s rules and regulations are
much less onerous
SHIPPING TO HONG KONG
o Transit time from Oakland to Hong
Kong is approximately 3 weeks
o Consolidated 20 foot REEFER from
Oakland to Hong Kong (inclusive of
consolidation costs, documentation
costs, etc.) costs $4,500
BEER PRICING (EXAMPLE)
US Wholesale Price 12 oz. bottles
Price Upon Arrival in Hong Kong
Off-Premise Price (online retail shop)
On-Premise Price
$21/case
$28/case $72/case $184/case
.88/bottle
$1.17/bottle $3/bottle $7.67/bottle
WHERE ARE WE
HEADED?
o Slow, steady growth in craft beer
demand and sales
o Most popular beer styles are
currently wheat beers, fruit
beers, and stouts, with a growing
interest in American-style IPAs
o Current demand is driven by expatriates, but interest
among locals is growing
o Increased interest in craft beer on draught and
brewing craft beer locally
ABOUT AMERICRAFT
o Hong Kong-based importer and distributor of US craft beer founded by Laurie Goldberg, an attorney, beer enthusiast and former resident of Massachusetts, Hawaii, and California
o Mission: To bring the best American craft beer to Hong Kong and to encourage American craft beer appreciation through education, staff training, and events
o Current Portfolio:
• Anchor Brewing: Anchor Steam®; Liberty Ale®; Anchor Porter
• Lost Coast Brewery: Indica IPA; Great White; Tangerine Wheat; Alleycat Amber; Downtown Brown; 8-Ball Stout
• Big Sky Brewing Co.: Big Sky IPA; Moose Drool; Trout Slayer; Scape Goat Pale Ale
• Kona Brewing Co.: Longboard Lager; Wailua Wheat
• Shmaltz Brewing Co.: Hop Manna IPA, Genesis Dry Hopped Session Ale, Bittersweet Lenny’s R.I.P.A., Origin Pomergranate Ale, Coney Island Lager, Mermaid Pilsner