Tsingtao soars on rising beer demand

As previously reported, beer consumption in the People’s Republic of China is up – WAY up. And Tsingtao Brewery Co Ltd, China’s best known beer brand, is leading the campaign. Tsingtao posted a 63.4 percent increase in first-half of ’07, as rising Chinese incomes boosted demand for beer and a taste for more expensive brews. The brewery, which is partially owned by top U.S. beer maker Anheuser-Busch Cos. Inc, saw a net income increase to 347.57 million yuan ($45.92 million USD) from January-June, up from 212.74 million yuan a year earlier. Tsingtao hopes to maintain a 12 percent sales growth this year, against an 11.5 percent gain in 2006.

And 2008 will undoubtedly prove an even bigger year for the brewing giant, thanks in part to the 2008 Olympics — it is a co-sponsor and will host sailing events — which is expected to spur sales and boost its brand name even further.