Promoters nurture Shanghai "beer culture"

With the Chinese government fearing food shortages and actively discouraging the production of spirits that are distilled from food grains, U.S. joint venture breweries in Shanghai are finding a unique opportunity for market development.

The Chinese do not eat barley or hops, thus beer production provides a politically correct alternative to an economically undesirable use of the food grains needed to produce distilled spirits.

Since economic reforms began, China has been nurturing a "beer culture," a term coined by the industry and promoted by the press. Both print and electronic media have expounded the virtues of the "wonder brew," despite the disapproval of temperance groups. Fortunately for the beer industry, any criticism has been decidedly mild.

The Chinese consider beer more nutritious that any other alcoholic beverage, except for tonic spirits. Chinese who drink beer refer to it as "liquid bread." They also believe it to be less intoxicating, so it attracts occasional drinkers and women.

Five Breweries Dominate Market

Shanghai maintains its immense beer production strength with the top five joint-venture breweries: Shanghai Mila Brewery Co., Ltd.; Shanghai Foster's Brewery, Ltd.; Shanghai Brewery Co., Ltd.; Shanghai Donghai Brewery Co., Ltd., and Shanghai Suntory Brewery Co., Ltd.

These companies brewed most of the 3.3 million hectoliters(1) of beer produced in Shanghai in calendar year 1996. Shanghai residents consumed a total of 4.15 million hectoliters in 1996 - 850,000 hectoliters came from other provinces.

Pick Your Favorite Beer

Domestic and import brands abound in the Shanghai market. Here are
some samples:

Local

Premium Shanghai                      Donghai
Foster's                              Dain Brau
Lone Star                             Swan
Suntory

Imports

Amstel                                Henry Weinhard

World Brands, Made Domestically

Tsingtao                              Budweiser
Yanjing                               San Miguel
Wuxing (Fivestars)                    Blue Ribbon
Heineken                              Tiger
Carlsberg                             Beck's

COPYRIGHT 1997 U.S. Department of Agriculture
COPYRIGHT 2004 Gale Group