Huarun'S Acquisition Of Heineken'S Chinese Assets Insider: Hou Xiaohai Beer War "Methodology"

Beer sales tend to be saturated or even down, and high-end will determine who will be the position of China's beer market in the future.

Running 10 kilometers every morning is the first "breakfast" after Hou Xiaohai gets up.

On the morning of the day before the Spring Festival in 2018, Hou Xiaohai, CEO of Huarun beer (Holdings) Limited (00291.HK, hereinafter referred to as Huarun beer) quietly appeared in the streets of Amsterdam.

Even in the past two years, there are still many people inside and outside the company who do not know Hou Xiaohai's trip to Holland. Without this "cover up" running to visit HeineKen headquarters in person, the subsequent marriage between Huarun and HeineKen will no longer exist.

7 months later, in August 3, 2018, Huarun and HeineKen jointly signed the agreement which was later called "a rare successful big deal". In November 5th of the same year, the two sides signed formal agreements.

Recently, Huarun CEO Hou Xiaohai reopened the beer merger case to the economic news reporters in twenty-first Century, and was also the first to disclose the details inside the company for the first time.

Beer sales tend to be saturated or even down, and high-end will determine who will be the position of China's beer market in the future. Gan Jun system

Methodology first

Speaking of this rather mysterious trip, Hou Xiaohai explained that it was about the cost of licensing HeineKen's brand, and the partners Huarun beer put forward "hope to drop a little bit". On the grounds that HeineKen did not have precedents, Mark, the chief judge of the HeineKen global merger and acquisition, began to take a vacation.

Seeing that love is going to blow, Hou Xiaohai, the leader of the Chinese negotiated group, hurriedly bought the ticket to "save the field".

"4 times of stagnation," Hou Xiaohai recalls. "But this time it stops, it may be really yellow."

HeineKen's love for its brand has almost gone to a metamorphosis. Not only Hou Xiaohai, but also the top executives of Huarun who participated in the negotiations felt the same way.

Why does Huarun insist on joining HeineKen?

"We need to focus not only on Chinese brands, but also on the need for international brands to compete with them so as to win the final battle." Hou Xiaohai told reporters on twenty-first Century economic report.

"Chinese beer enterprises have a long way to go through mergers and acquisitions." Chinese beer should be imported and sent out instead of going out and selling it. " Hou Xiaohai has a methodology based on reality.

In July 2017, when Hou Xiaohai knocked on the door of Fu Yuning Office of Huarun group in Shenzhen, the idea had already been in his mind for a long time.

Before that, Chinese beer enterprises either unilaterally ceded their shareholdings or even handed the "sovereignty" to foreign enterprises, such as Chongqing beer, Harbin beer, SEHK beer, Wusu Beer and Dali beer. All of them fall into the embrace of foreign capital.

Hou Xiaohai believes that China's beer enterprises should "reverse their acquisition of foreign businesses in China and win the brand authorization". Like the international beer giant's acquisition of Chinese beer brand, Chinese enterprises should "play" Chinese and foreign brand combinations. First, the introduction of international brands, and then through cooperation, the Chinese beer, rather than like other Chinese enterprises to go out, or simply sell products. The Chinese beer goes to sea, but also needs to teach the art. This is the deep logic of Huarun beer methodology.

"This project is a series of designs, plans and plans from strategic planning to implementation. This project is not a sudden arrival, but a whole process from planning to layout, to implementation, to blossom and blossom. 2019 for the organizers, it may be of great reference value and demonstration significance for other mergers and acquisitions and some projects. " Hou Xiaohai summed up the twenty-first Century economic report reporter.

It is not enough to have methodology. Now that we need to introduce international high-end brands, who is the most suitable?

"When we introduced, we preferred HeineKen beer to Carlsberg, three Molson Coors, four Asahi and Kirin." Hou Xiaohai told reporters on the twenty-first Century economic report: HeineKen beer has a long history, European ancestry, world-renowned, and Huarun Budweiser's rival Budweiser group has a better global high-end image and market.

HeineKen has three factories and two sales companies in China, but its overall sales in China are not good enough. Up to the end of 2017, the financial reports showed that HeineKen trade (Shanghai) Limited, HeineKen beer (Shanghai) Co., Ltd. and HeineKen brewing (Zhejiang) Co., Ltd., HeineKen brewing (Hainan) Co., Ltd. all appeared a single enterprise to about 60000000 yuan, small to three million yuan loss, and the performance decline continued to deteriorate.

"Snow Beer in the Chinese market channel network and a large number of retail outlets to overlay the advantages of international brands, the two sides can complement each other." Hou Xiaohai concluded.

HeineKen, as the world's beer second, is the first foreign beer enterprise to enter the Chinese market, and is not inferior to Budweiser in the high-end market. However, what it most unwilling to see is that today's growing Budweiser group has become a competitor between Huarun and HeineKen.

Losing the Fujian market is a big mistake for HeineKen. Due to the inadequacy of HeineKen's competitive position in the Chinese market, in August 2005, when Budweiser InBev (Budweiser group predecessor), with a "sky price" of nearly 6 billion yuan, delisting a regional beer brand, 39.48% of the state-owned shares, HeineKen also chose to let go.

After Fujian's thriving HeineKen market was surpassed by Budweiser InBev, HeineKen's business in China gradually shrank to Fujian and Shanghai, Jiangsu, Zhejiang, Guangdong and Hainan provinces, and output fell to the top five in the Chinese market.

"HeineKen certainly hopes to have a share in China's high-end market. Otherwise, like the Asahi Beer, it would have been withdrawn. " Hou Xiaohai said that China's consumption upgrading has just begun. Can HeineKen be reconciled to the last big fat in the high-end development of the world?

Hou Xiaohai boldly guessed that HeineKen should be very willing to cooperate with Huarun beer.

Multiple "unexpected"

If you do not take the unusual road, you will be doomed to be full of thorns and accidents.

By the end of 2017, Huarun's office in Hongkong. 49 / F, China Resources Building, 26 Harbour Road, Wan Chai, Hongkong.

HeineKen and Huarun meet for the second time.

Huarun was not prepared at that time. After all, only second meetings, it is good to knock the cooperation intentions of both sides.

No greeting. HeineKen global CEO, the head of global mergers and acquisitions and the Asia Pacific region president and head of China walked into the office one by one, holding a thick pile of data printed in the hand. After sitting down, HeineKen's representative opened the computer and spoke PPT directly.

HeineKen is talking about what should be done if the two sides cooperate to win the high-end market in China, and formulate a basic framework and business objectives for future cooperation between the two sides. It turned out that HeineKen not only read "understand" Huarun's first cooperation meeting with the intention of cooperation and transmission of cooperation signals, even how to do, the second time will be finalized!

The Huarun team was stunned.

In fact, HeineKen was the first to be shocked.

In July 26, 2017, Singapore.

At that time, Chen Lang, vice president of Huarun group and chairman of Huarun pioneering board, took Zhu Lijun, deputy director of Strategy Department of Huarun snow beer (China) Limited (hereinafter referred to as "Snow Beer" and "Huarun beer").

"We are willing to cooperate with you, and also look forward to your development in China. We are willing to grow with you. " At the first meeting, Chen Lang made a strong statement. Do you want to represent the product or do you want to communicate? This really surprised HeineKen.

"We want to marry you, not to be in love, or to make friends!" Chen Lang simply said. On this occasion, the HeineKen family representative who had "looked at" the state of mind was shocked. Without any statement, the other side only said, "go back and think about it."

There was no news for four or five months of silence. Until the second time HeineKen took the initiative.

Hou Xiaohai did not think that during the period of "slow reaction", the directors of HeineKen group were actually studying two things very seriously: first, the Chinese market, the Chinese beer market and the high-end market of Chinese beer; two, Huarun group and Huarun beer. With the result of the study, there were only second meetings.

Not only did you know Huarun beer very well, but even at the two meeting place, HeineKen was also well thought out.

HeineKen lacks control over the Chinese market, which is the advantage of Huarun beer. The two meeting was not selected in the mainland of China, which is undoubtedly a gesture of HeineKen: to avoid its short board, at least to take the initiative at the meeting place, and to win the right to negotiate with the other side.

More unexpected is still behind.

Through the second meeting, HeineKen agreed with Hou Xiaohai's basic principles of bilateral cooperation: after the two sides must cooperate, they must be "one company and one team" and must be managed by Hou Lai, that is, Huarun beer.

But as for the brand combination of the two sides, what brand to do, how to do it and how to do it, Hou Xiaohai did not expect it. Not only that, but the length of negotiations, the complexity and the difficulty of it were not in Huarun's 26 year history of mergers and acquisitions.

In December 4, 2017, the two project teams held talks for the first time in Hongkong.

Hou Xiaohai is the project leader of the Chinese side, the chief financial officer of snow beer, Wei Qiang, deputy head of the group, and Zhu Lijun, the strategic vice director of snow beer, as the project manager. Huarun launched its financial controller and legal director to join the group to support negotiations. Because of trade secrets, the project is named "crossbar project", which is designed to cross China and across the globe.

"We are not talking about deals with you." When Hou Xiaohai appeared in front of HeineKen with a large negotiating team composed of financial, strategic and legal professionals, the other side said bluntly.

HeineKen requires two groups, one trading group and one business plan group, to call the two sides joint negotiating group. "This negotiation is completely different from the past. These two groups are something we have never seen before. " Hou Xiaohai told reporters on the twenty-first Century economic report that Huarun thought the business plan group was preparing materials, but later it was not at all.

The biggest conflict and the most difficult negotiation comes from the business plan group. "All the negotiations on HeineKen are looking at the business plan group negotiations. The business plan group has made no progress and the trading team will never work. " Hou Xiaohai said.

Different ways of negotiation with most commercial negotiations in the country have touched Hou Xiaohai very much. "Snowflake beer buys a company in the country, how much assets, liabilities, due diligence, the other party according to the book value of a price. Then the two sides bargain, how much each share, how much to the other party. The price is ready, sign an agreement. Finally, the Ministry of justice came to talk about the day before and bought it. He said.

But negotiations with HeineKen began in December 4, 2017 and talked about the following year's August 3rd. "August 2nd is my birthday, originally wanted to give it as a birthday gift to myself, the result of HeineKen closed after the signing of the market, jet lag caused Beijing time is August 3rd morning." Hou Xiaohai laughed and mocked himself.

What happened in the 8 months of negotiation?

Hou Xiaohai recalled, first, how to do business? HeineKen has asked for a total of five years of joint business plan, which is very difficult. "Every negotiation needs to be set, which brand will be sold at HeineKen and which brand will be divided at which price? How to decide the price, what kind of packaging to choose, how many terminals and locations to sell, how much to sell? How much money do you spend on advertising? How much is it on the ground? How much is the sales cost, how much the profit is, how much the dealer is, the number of terminals, how many sales people are, how many sales people are, how to manage customers, how to manage prices, how to manage product mix, and how to manage product quality...... " Hou Xiaohai said in a long breath, "our team is going to" make "the whole China's HeineKen business plan in the next five years.

Two, how do we manage the two sides? "The power of management is terrible. This is our biggest difficulty." The stagnation of several negotiations is related to management rights. HeineKen and Huarun beer are both owners of the brand. HeineKen is concerned about the future, where are my people? Where is it located? What position? Man is a great thing. Do you say I sent you a person or did not send someone? Shall I send someone here or do you want to recruit, do you report it to me or report it to me?

What HeineKen values most is product quality and brand.

Huarun beer has set the principle that only one person is allowed to be sent by HeineKen after the cooperation. This person is the production director, ensuring that all HeineKen's beer quality in China is done according to the HeineKen standard. The Huarun side can have two or three management positions to be interviewed by HeineKen, but the decision is in the right beer. The rest of us will leave HeineKen alone.

Production is fine. For the first time in brand management, the collapse of the first time was Huarun beer's acquisition of HeineKen China and the authorized cost of HeineKen brand in China.

"We have made a request for" harsh ", and the licensing fee for HeineKen brand is expected to be more favorable. The other side says the world is the same, and the best thing is definitely given. " Hou Xiaohai said, the other side can not promise, the two sides will not talk.

It will soon be the year before we stop.

This brings Hou Xiaohai's "morning run" on the streets of Amsterdam at the beginning of this article. In Holland, Hou Xiaohai repeatedly explained that Huarun beer still has many difficulties in operating the market in China. Therefore, it is hoped that the content of the agreement on brand usage and brand use will be more favorable.

The HeineKen family finally agreed to go back to the negotiating table with Huarun beer.

Last April 29th, when Mark talked about the brand agreement in Hongkong and Huarun beer, he made a concession in the HeineKen framework.

"I understand that the standard of HeineKen's global authorization needs consistency. I know that the most favored nation treatment I have said must be within the psychological acceptance of Mark." Hou Xiaohai said he respected Mark very much. "HeineKen has acquired many enterprises around the world. They are too experienced in negotiating strong willpower and making preparations and trade-offs behind them. He said.

HeineKen is also concerned about what business plans do every year, every month and every quarter.

Hou Xiaohai drew a watch on the blackboard of the office in Hongkong. "We can establish a bilateral communication mechanism, including five years of strategic planning, annual business plan, quarterly operation and monthly business results, and establish a communication mechanism for the four seasons."

Hou Xiaohai told reporters on twenty-first Century economic report, who will attend? How often do you need to communicate? "To be frank, snow beer has the experience of working with SABMILLER (SAB Miller), and HeineKen did not have any idea at that time."

"So, early on, I suggested setting up a HeineKen support group as lubricant to solve the problem of how HeineKen group works with snowflake team. "Support" is the two word to give HeineKen group status. Hou Xiaohai said that the HeineKen group was placed on the side of HeineKen's business department in Shanghai, and asked to work together, but not in an office area. Hou Xiaohai also drafted a joint working mechanism in April last year after the completion of all transaction deals between the two sides, including the one to one meeting between himself and the supporting group leader, the learning mechanism of the group, and who will report the monthly report. He said HeineKen's support team is working very well now.

HeineKen's support and management have been respected and fully demonstrated, and Huarun has finally signed a formal agreement with Huarun.

Ten minute deal

Price negotiations are at the end of all negotiations.

Hou Xiaohai remembered that day was a conversation between Chen Lang and HeineKen group CEO. Hou Xiaohai sat next door to the negotiation room and waited for the result.

10 minutes. Chen Lang came out. "Yes, the market price!" Huarun group (beer) Co., Ltd., with a total cash consideration of about HK $24 billion 350 million, set up a new stock equivalent to 40% of the issued share capital of CBL to HeineKen group. CBL

How difficult is it to decide the moment of major share transfer? In fact, it is far simpler than imagined.

Many of the beer industry mergers and acquisitions, when the price of both sides is stalemate, often because of some occasional factors. This time, it is also a major node in beer merger and acquisition. Although Hou Xiaohai did not know what had happened in the last 10 minutes, it was the fastest and fastest way to deal with this major obstacle. "It's amazing." He said.

After Chen Lang entered, the stone in Hou Xiaohai's heart could not land.

When HeineKen was first introduced in early July 2017, the market value of Huarun beer was less than 100 billion Hong Kong dollars. After the news of the negotiations, Huarun's share price soared, and its market value reached HK $120 billion. That is to say, if HeineKen first finalized the price of Huarun's 40% stake with Huarun beer, HeineKen could spend less than HK $8 billion on the same terms. But HeineKen did not.

By August 3, 2018, after the two sides signed an unrestricted agreement, perhaps the good news came to an end, and Huarun's share price fell sharply by 27%. That is to say, four or five months after the signing of HeineKen and Huarun beer, the market value of Huarun beer has shrunk, and the two sides have finalized HK $24 billion 300 million, and HeineKen has spent more than HK $6 billion.

"After signing the agreement, your share price has gone down a lot. We have never considered it. Why? Because we can't see the rise or fall of share prices. We bought your company, not your stock. " HeineKen said.

Last July, after the formal agreement between the two sides, Huarun's share price hit a new high and HeineKen earned more than HK $3 billion. DOLF, HeineKen's Asia Pacific president, said the value of Huarun beer is far from being reflected.

"Later I figured out why trading prices were so fast. We found that through nearly a year of communication and negotiation, HeineKen has gained more understanding of the Chinese market, Chinese beer and snow beer, and they have more knowledge of the value of snow beer enterprises. Therefore, they believe that the price is to be discussed, but not the main one. They are buying the future of snow beer and buying the future of China's beer market. " Hou Xiaohai said that HeineKen's determination and long-term vision are worth learning by many Chinese enterprises.

Snowflakes studied by HeineKen

Shun Feng courier Yao Hongguo sent a day to return home, always have a bottle of beer before eating habits. One day, he tasted a new snowflake called "ingenuity building". He excitedly sent a WeChat to a friend who sent wine: "is this snowflake?" This is the best homemade beer I've ever had. It tastes too authentic. "

In the same way, many changes in snowflake beer have impressed HeineKen.

In the 90s of last century, he took an airplane, and Ning Gao Ning, general manager of Huarun venture, read the prospectus of Tsingtao Brewery listed in Hongkong. He is sifting out the industry and realizing Huachang's transformation from Hongkong to the mainland. He has a strong interest in entering the beer industry.

In 1993, the Shenyang municipal government invested a lot of money, and produced one of the ten largest profits and taxes of the year, the Shenyang brewery. At the first glance, it was the Huarun venture. Shenyang Huarun snow beer company was established through merger and acquisition. With capital, snowflakes are toddlers.

M & A is the congenital gene of Huachang. Its former Yongda shares, a small business listed in Hongkong in 1973, mainly engaged in textile trade and property leasing, was held in 1992 by Huarun Limited (Huarun group predecessor). It was renamed "Huarun business" in 1992 and became the first listed company in Huarun department.

In 2005, the snowflake brand sold 158 million liters, becoming the first beer brand in China. In 2006, Huarun became the largest beer business in China. In 2011, the total sales volume of snowflake and the sales volume of snowflake brand exceeded 1000 million liters, ranking the first in the beer industry in the whole country. At that time, the people who worked on this career, from snow beer general manager Wang Qun to the district manager, were all a shoulder bag, a pair of white jeans, which are convenient for the market and return to the office for meetings. "Backpackers" became the standard of Huarun beer.

This looks like "IT male" disguised and behaving in a manner that is destined to snow beer from the day of its birth, every day in "entrepreneurship." 2014 was the first year when Fu Yuning was transferred from the China Merchants Group to Huarun group. Fu Yuning put forward the development concept of "Huarun to be solid, strong, big, good and long" in the complex and numerous businesses, which is called 5M concept. The first one was Huarun.

In April 21, 2015, Huarun announced that it had divested three of the 80% major retail, food and beverage businesses in the Huachang listed company, and sold them to the parent company Huarun group, leaving only the most profitable beer business. In September 2nd, Huarun announced that the deal had been completed and beer became the core business, like most beer companies in the world.

The loss of assets was stripped, and the price of Huachang rose sharply. It rose to HK $15 and HK $16 from HK $11.12 per share before restructuring. Before its divestiture, the market value of Huachang fell from HK $about 60000000000 in 2013 to less than HK $40 billion.

Huachang's business restructuring has become a new starting point for Huarun's strategic layout. In the second years after the reorganization of Huachang, the market value of Huarun was directly under 100 billion Hong Kong dollars.

Together with the largest scale of M & A in the century, Huarun beer has been accelerated into the world wave of beer mergers and acquisitions.

In September 2015, the world brewery boss Budweiser InBev ate the second SAB Miller. SAB Miller is the two shareholder of Huarun beer, holding 49% of the shares. As Budweiser's share of beer market in China is too large, weighing the pros and cons, Budweiser InBev must be stripped as soon as possible after the merger, SAB Miller holds Huarun Huarun shares. Otherwise, the anti monopoly investigation of China's Ministry of Commerce will not affect the integration process of its global business.

In the rush to "break off" as soon as possible, in March 2016, Huarun bought SAB Miller, which owns 49% of the listed company with a total of 1 billion 600 million US dollars (HK $12 billion 400 million), and Budweiser InBev successfully passed the antitrust investigation. "Under the leadership of Fu Yuning, chairman of the group and chairman Chen, chairman of Huarun venture, we bought a 49% stake at a very low price, which has earned more rights and interests for the preservation and appreciation of state assets." Hou Xiaohai laughed.

At that time, the internal and external environment of Huarun beer has changed dramatically. General manager Wang Qun has reached the age of 60. Huarun needs a new leader to manage the business.

In the history of Chinese beer, to a large extent, it is done by people. Jin Zhiguo, Li Fucheng, Hua Zheng Xing, Budweiser InBev CEO and so on have made many breakthrough points in China's beer industry.

In March 2, 2016, snow beer held an enlarged meeting of top management personnel, announcing the appointment of Wang Qun as executive vice chairman of snow beer, Hou Xiaohai as general manager of snow beer, and other management team members appointed at the same time. The meeting said that the new general manager and management team members were all open to competition within Huarun group.

Like all the management of snow beer, although Hou Xiaohai returned to headquarters, he also came out of the "backpack era". An insider of snow beer recalls that when he became the general manager, Hou Xiaohai went to Luzhou to attend the forum of the wine expo. After the forum, he did not attend the collective dinner. Instead, he went to the famous restaurant street in Luzhou behind the venue to visit the market.

After graduating from the National People's Congress and after a brief stay in Shougang, Hou Xiaohai entered the field of sales and marketing in 1995. In 1995, Gallup joined the foreign company, American Consulting Co., Ltd., joined Pepsi Co in 1997. In 2002, he served as the director of sales development of snow beer, and became the deputy general manager and marketing director of snow beer the following year. Because of its excellent marketing and management ability, snow beer quickly occupied the market.

In the beer career of more than 20 years, Hou Xiaohai has had many experience of choosing a club. 111 days after switching to Venus beer, I resigned resolutely because of the "system is not suitable, many ideas can not be achieved". In July 2008, Hou Xiaohai served as vice president of InBev Group Asia Pacific market. Half a year later, Hou Xiaohai returned to snowflake, responsible for the market in Guizhou and Sichuan, and made great contributions to becoming an important profit area of snow beer.

"If I do not reform, I will quit." Hou Xiaohai, a general manager of Huarun CEO and snowflake beer, does not value this position.

"His personality is just like the product we launched," go all the way to the world, be enterprising, dare to accept challenges, and affirm everything that is difficult to overcome. " The man who knows Hou said.

Win the high end

In Yonghui supermarket, a bottle of 330 ml Budweiser retail price is two times the price of its domestic beer.

In 2018, Hou Xiaohai presented the blueprint for the decisive battle at Huarun's internal meeting. He believes that as the volume of beer sales tends to be saturated or even down, the share and position of high-end and above segments will determine who will be the position of China's beer market in the future.

Global data show that from 2013 to 2018, the composite annual growth rate of beer consumption in the Asia Pacific region is 7.9%, which is much higher than that of the mainstream and special beer. From 2018 to 2023, the composite growth rate of high-end and super high-end portfolios is expected to be 5.6%, which is also higher than that of the latter. Huarun and Budweiser and HeineKen believe that China's beer is the largest market share of the world's high-end beer market share, because there is still a great opportunity for China to upgrade its consumption.

In 2018, Huarun achieved sales of 1128.5 million liters, accounting for 30% of the total beer sales in the same industry. But in the high-end and ultra high-end version of the domestic beer market, this is not the case at all.

According to the information released by Budweiser Asia Pacific Holdings Limited (hereinafter referred to as Budweiser Asia Pacific) before listing in Hongkong, Budweiser and Asia Pacific accounted for 46.6% of the high-end and ultra high-end consumption in China's beer market in 2018 from 40% in 2013. Tsingtao Brewery accounted for 14.4% of high-end and ultra high-end consumption in 2018, and Huarun was 11%.

Although the market share of snow beer in the high-end market released in 2018, according to Huarun's internal information snowflake Road, is 15%, and the high-end sales in recent years have been rising, compared with Budweiser Asia Pacific, it is not an order of magnitude. In the beer industry, the retail price of 6 yuan /500 ml is often used as a watershed for ordinary beer and medium and high end beer.

First look at revenue ranking. China's beer sales have declined since 2014, and only slight growth has been observed in 2018 and 2019. When sales volume has increased slightly or even declined, the higher proportion of high-end and ultra high end product structure will become the biggest variable affecting sales revenue. As long as China holds the top position of high-end beer in China, it does not affect Budweiser Asia Pacific's revenue as the first in the industry.

Look at the impact of high-end brands on market capitalization. After taking charge of the management team headed by Hou Xiaohai, the management team increased efficiency, subdivided the consumption scenes and crowed the high-end products. The snowflake "ingenuity building", which Yao Hongguo likes, was born in 2018 with a price of up to 10 yuan / branch. In January 17th, the market value of Huarun was HK $133 billion 822 million, which was more than 3 times that of 2014. This market value is two times the market value of Tsingtao Brewery in the same period, 6 times the market value of Yanjing Beer, and second of Huarun group's 7 listed companies in Hong Kong, second only to Huarun.

However, Budweiser Asia Pacific, which was listed as a subsidiary of Budweiser group in Hongkong in September last year, was also in January 17th, its market value was HK $343 billion 4 million, which did not add Budweiser group's market value in Mexico, New York, Belgium and other listed places in the world.

"Double profits in the next 5 years and double market value." After the new team came into power in 2017, Huarun put forward the goal of high quality development.

External, how does China's beer go to the world? Since the 90s of last century, Chinese beer enterprises have tried many breakout paths.

Yanjing beer goes all the way through state-owned ownership. "If I will not be eaten in 35 years, I will not be a joint venture for the time being. Even joint ventures, we must firmly grasp the controlling stake. Otherwise, it is not that you use foreign capital, but that others use you. " Back in the 90s of last century, an international beer equipment maker who was working with Yan beer was answered by Li Fucheng, who was the head of Yan beer.

Compared with the longer history of European and American countries, China has the longest history of breweries dating back to 1900. Therefore, more Chinese beer producers choose to sell their equity and some markets in exchange for the capital, technology, management, products and high premium space of internationally renowned brewers.

As early as 2004, the British brewery producer, Scotland Newcastle, bought 525 million of the heavy beer group holding 19.51% of Chongqing beer (600132.SH) and became the second largest shareholder of heavy beer. This originated in Newcastle as early as 90s, began to authorize heavy beer production and sale of its beer brand, long-term brand export market access. Then, in 2012, Tsingtao Brewery and Japan's Suntory beer set up a joint venture in the East China market. Qingdao beer was granted a 50% stake in the joint venture company. It was authorized by Suntory to produce the brand beer and jointly manage the Suntory factory. After the two sides failed to cooperate, in 2015, they recovered their shares from Tsingtao beer, and San TLI withdrew from China. However, Tsingtao still retained the authorization for the production of the beer brand.

To get out of the country, China's beer is now more of a trade path. According to the 2017 public earnings report, the number of Chinese wine sales through overseas sales reached the highest level in Guizhou, which reached 2 billion 270 million yuan, and Tsingtao Brewery was 680 million yuan, compared with the domestic revenue in 2017.

"We need to focus not only on Chinese brands, but also on the need for international brands to compete with them so as to win the final battle." Hou Xiaohai told reporters on twenty-first Century economic report.