Source: State Tax Administration
5.3 Beverage manufacturing industry
Starting from the reform and open-up, China’s beverage manufacturing industry is development hot area and a new growth point in China’s consumptions. During the 30 years, this industry has become developed and mature from small scale, single product structure, and disordered competitions to a larger scale, a higher intensive degree and a more reasonable structure. It has made great achievements in brand development with more than a dozen Chinese brand enterprises and 22 brands in five categories products are rewarded as China top brands. In recent years, China’s beverage manufacturing has become one of the markets that develop at the fastest speed in China’s food industry.
Chinese local beverage enterprises mainly operate separately with a relatively small scale. The expansion of beverage market is restricted by factors such as short of capital, single financing channel, small technical content and weak strength. Along with the market internalization and local enterprises’ brand operation for so many years, a loyal brand consumption group has been formed gradually, which creates positive conditions for the development of products and market in new era. In a long period in future, China’s beverage enterprises will usher in a wider market and a better development environment.
In 2008, the total industrial output value of beverage manufacturing industry accounted for 6.68% of the value of light industry. Beverage manufacturing industry is an important industry, including alcohol manufacturing, alcoholic drinks manufacturing, soft drinks manufacturing and refined tea manufacturing.
From 2004 to November 2008, the number of beverage manufacturing industry increases from 3,469 to 4,807. The assets increased from 325.2 billion yuan to 567.1 billion yuan. The total industrial output value and industrial sales value increase from 244.1 billion yuan and 569.7 billion yuan to 238.9 billion yuan and 402 billion yuan respectively. The contribution margin increase from 15.5 billion yuan to 46.8 billion yuan.
Figure 5-13 Scale growth of beverage manufacturing industry 2004-2008
Item
|
Jan.-Nov. 2008
|
2007
|
2006
|
2005
|
2004
|
Number of enterprises
|
4807
|
4422
|
3914
|
3519
|
3469
|
Average annual employees
|
10.7
|
10.1
|
9.2
|
8.9
|
8.4
|
Total asset(100 million yuan)
|
5671
|
4903
|
4073
|
3514
|
3252
|
Total industrial output value(100 million yuan)
|
5697
|
5082
|
3899
|
3089
|
2441
|
Industrial sales revenue(100 million yuan)
|
5542
|
4963
|
3825
|
3021
|
2389
|
Contribution margin(100 million yuan)
|
468
|
445
|
300
|
221
|
155
|
Source: China National Light Industry Council
The industrial output value of alcohol manufacturing industry reached 10.7 billion yuan in 2004 and increased to 45.5 billion yuan in 2008. The industrial output value of alcoholic drinks manufacturing was 136.3 billion yuan in 2004 and 346.9 billion yuan in 2008, accounting for 50.5% of beverage manufacturing industry. The total output value of soft drinks manufacturing increased from 137.6 billion yuan in 2004 to 229.9 billion yuan in 2008, accounting for 36.7 of the output value of beverage manufacturing industry. Refined tea manufacturing generated a total industrial output value of 8.8 billion yuan in 2004 and increased to 34.9 billion yuan, accounting for 5.5% of beverage manufacturing industry.
Figure5-14 Total output value of major sectors of beverage manufacturing industry 2004-2008
Unit: 100 million yuan.
Item
|
2008
|
2007
|
2006
|
2005
|
2004
|
Alcohol manufacturing
|
455
|
177
|
82
|
276
|
107
|
Alcoholic drinks manufacturing
|
3169
|
2612
|
2086
|
1718
|
1363
|
Soft drinks manufacturing
|
2299
|
1830
|
1077
|
806
|
1376
|
Refined tea manufacturing
|
349
|
266
|
162
|
117
|
88
|
Source: China National Light Industry Council
The sales costs of beverage manufacturing industry increased from 164.4 billion yuan in 2004 to 402 billion yuan in 2008. The management expenses increased from 16.3 billion yuan in 2004 to 25 billion yuan in 2008.The financial expenses increased from 3.2 billion yuan to 5.0 billion yuan. January to November in 2008 saw a year-on-year growth of 25.8% in sales costs, 25.2% in management expenses and 34.1% in financial expenses.
Figure 5-15 Costs and expenses of beverage manufacturing industry 2004-2008
Item
|
2008
|
2007
|
2006
|
2005
|
2004
|
Sales costs (100million RMB)
|
4020
|
3541
|
2779
|
2135
|
1644
|
Year-on-year growth (%)
|
25.8
|
27.4
|
30.2
|
29.9
|
-88.4
|
Management expenses (100million RMB)
|
250
|
243
|
197
|
166
|
163
|
Year-on-year growth (%)
|
25.2
|
23.3
|
18.6
|
2.0
|
18.5
|
Financial expenses (100million RMB)
|
50
|
44
|
35
|
29
|
32
|
Year-on-year growth (%)
|
34.1
|
25.1
|
21.8
|
-9.4
|
-1.7
|
Source: China National Light Industry Council
The asset growth ratio of beverage manufacturing industry kept a very high growth during 2004 to 2008, and peaked at 20.4% in 2007, followed by 18.7% in 2008. The asset-liability ratio maintained a steady change, which reached as high as 56.8% in 2004 but dropped slighted to 52.5% in the first 11 months in 2008.The contribution margin increased remarkably during 2005 to 2008. The profit growth rate was 48.3% in 2007. It kept a rapid year-on-year growth at 21.5% in the first 11 months in 2008 of the world economic depression and the domestic economic slowdown. The annual employee growth ratio was 9.2% in the first 11 months in 2008 and 9.5% in 2007.
Figure5-16 Profit growth of beverage manufacturing industry 2004-2008 Unit: %
Item
|
Jan.- Nov. 2008
|
2007
|
2006
|
2005
|
2004
|
Asset growth ratio
|
18.7
|
20.4
|
15.9
|
8.1
|
1.9
|
Asset-liability
|
52.5
|
53.3
|
53.4
|
53.3
|
56.8
|
Profit growth ratio
|
21.5
|
48.3
|
35.7
|
42.7
|
4.1
|
Growth ratio of total industrial output value
|
25.4
|
30.3
|
26.2
|
26.6
|
9.3
|
Annual employee growth ratio
|
9.2
|
9.5
|
3.7
|
6.1
|
-5.7
|
Source: China National Light Industry Council
The output of fermented alcohol was 2.86 billion kilolitres in 2004, up by 12.5% on a year-on-year basis and increased to 6.81 billion kilolitres in 2008, up by 4.1% on a year-on-year basis. In 2008, the alcoholic drinks output was 48.823 million kilolitres, up by 7.0% on a year-on-year basis. The Chinese Baijiu output was 5.693 million kilolitres, up by 15.8% on a year-on-year basis. The beer output was 41.031 million kilolitres, up by 5.5% on a year-on-year basis. The wine output was 70,000 kilolitres, up by 23.8% on a year-on-year basis. The soft drinks output was 64.151 million ton, up by 19.1% on a year-on-year basis. Sodas output was 1.107 million ton, up by 10.4% on a year-on-year basis. Refined tea output was 98,000 ton, up by 10.9% on a year-on-year basis.
Figure 5-17 Output of major products of beverage processing industry 2004-2008
Item
|
Fermented alcohol
|
Year-on
-year increase or decrease
|
Alcoholic
drinks
|
Year-on
-year increase or decrease
|
Chinese
Baijiu
|
Year-on
-year
increase
or decrease
|
Beer
|
Year-on
-year
increase or decrease
|
(100 million kilolitre)
|
(%)
|
(10,000 kilolitre)
|
(%)
|
(10,000
kilolitre)
|
(%)
|
(10,000
kilolitre)
|
(%)
|
2008
|
68.1
|
4.1
|
4882.3
|
7.0
|
569.3
|
15.8
|
4103.1
|
5.5
|
2007
|
63.6
|
17.9
|
4611.6
|
14.7
|
493.9
|
22.2
|
3931.4
|
13.8
|
2006
|
54.6
|
44.1
|
4072.5
|
15.1
|
397.1
|
18.2
|
3515.2
|
14.7
|
2005
|
36.8
|
35.7
|
3565.8
|
11.0
|
349.3
|
15.0
|
3061.6
|
10.3
|
2004
|
28.6
|
12.5
|
3378.4
|
14.4
|
311.7
|
2.0
|
2910.1
|
15.2
|
Item
|
Wine
|
Year-on-year increase or decrease
|
Soft drinks
|
Year-on-year increase or decrease
|
sodas
|
Year-on-year increase or decrease
|
Refined
tea
|
Year-on-year increase or decrease
|
(10,000 kilolitre)
|
(%)
|
(10,000 ton)
|
(%)
|
(10,000
ton)
|
(%)
|
(10,000
ton)
|
(%)
|
2008
|
7.0
|
23.8
|
6415.1
|
19.1
|
110.7
|
10.4
|
9.8
|
10.9
|
2007
|
6.7
|
37.1
|
5110.1
|
19.8
|
104.0
|
15.4
|
8.7
|
20.2
|
2006
|
4.9
|
18.0
|
4219.8
|
21.5
|
87.7
|
11.4
|
6.4
|
21.2
|
2005
|
4.3
|
25.4
|
3380.4
|
24.1
|
77.2
|
19.2
|
5.2
|
21.1
|
2004
|
3.7
|
14.8
|
2620.2
|
19.5
|
63.9
|
16.6
|
4.3
|
23.0
|
Source: China National Light Industry Council
Chinese top 50 beverage manufacturing enterprises in terms of tax payment in 2007 are as follows:
Figure5-18 Chinese top 50 beverage manufacturing enterprises in terms of tax payment in 2007
Rank
|
Region
|
Name of enterprise
|
Tax(10,000 RMB)
|
1
|
Guizhou
|
Kweichow Moutai Co.,Ltd.
|
96690
|
2
|
Qingdao
|
Tsingdao Brewery Co.,Ltd.
|
75523
|
3
|
Sichuang
|
Wuliangye Group Co., Ltd.
|
70580
|
4
|
Shanghai
|
Coca-Cola (China) Beverages Ltd.
|
60089
|
5
|
Shanxi
|
Shanxi Xinghua Cun Fen Chiew (Group) Co.,Ltd
|
55394
|
6
|
Beijing
|
Beijing Yanjing Brewery Co.,Ltd.
|
52763
|
7
|
Guangdong
|
Guangzhou Zhujiang Brewery Group Co.,Ltd.
|
49196
|
8
|
Fujian
|
Inbev-Sedrin Beer Co.Ltd.
|
47235
|
9
|
Guangdong
|
PepsiCo (China) Limited
|
42116
|
10
|
Sichuan
|
Sichuan Jiannanchun Group Co.LTD
|
30109
|
11
|
Guangxi
|
Yanjing Beer (guilin Liquan) Co., Ltd.
|
28105
|
12
|
Tianjin
|
Sino-French Joint-Venture Dynasty Winery Ltd.
|
27417
|
13
|
Hubei
|
Budweiser (wuhan) Int/l Beer Co., Ltd.
|
26514
|
14
|
Jiangsu
|
Jiangsu Yanghe Package Co.,Ltd
|
24375
|
15
|
Beijing
|
Beijing Red Star Co.,Ltd
|
24100
|
16
|
Liaoning
|
China Resources Breweries Co., Ltd.
|
23710
|
17
|
Sichuan
|
Luzhou Lao Jiao Co.,Ltd.
|
23489
|
18
|
Beijing
|
RedBull Vitamin Drink Co. Ltd.
|
22161
|
19
|
Guangdong
|
Guangdong Shunde Wine Co.,Ltd.
|
21419
|
20
|
Chongqing
|
Chongqing Brewery Co.,Ltd
|
21226
|
21
|
Fujian
|
Fujian Huiquan Brewage LTD.
|
19232
|
22
|
Sichuan
|
Sichuan Jian Nan Chun Group Co.,Ltd.
|
18127
|
23
|
Guangdong
|
Guangdong JDB Group
|
17983
|
24
|
Heilongjiang
|
Harbin Brewery Co.,Ltd.
|
17627
|
25
|
Zhejiang
|
Zhejiang JDB Beverage Co.,Ltd.
|
17221
|
26
|
Shaanxi
|
Tsingtao Brewery Xi'an Hans (Group) Co.,Ltd
|
17188
|
27
|
Hubei
|
China Resources Breweries (Wuhan) Co., Ltd.
|
16896
|
28
|
Zhejiang
|
China Resources Breweries (Zhejiang) Co., Ltd.
|
16575
|
29
|
Hebei
|
China Great Wall Wine Co, Ltd
|
16573
|
30
|
Guangdong
|
Guangzhou Dingjin Food Co., Ltd.
|
15625
|
31
|
Anhui
|
Anhui Gujing Distillery Co.,Ltd
|
15088
|
32
|
Jilin
|
Jilin Fuel Ethanol Co., Ltd.
|
14938
|
33
|
Hebei
|
He Bei Cheng De LoLo Company Limited
|
14574
|
34
|
Shanghai
|
Shanghai Jinfeng Wine Co.,Ltd
|
14125
|
35
|
Sichuan
|
China Resources Breweries (Mianyang) Co.,Ltd
|
13861
|
36
|
Jiangsu
|
Jiangsu Jinshiyuan Wine Co., Ltd.
|
13635
|
37
|
Sichuan
|
Sichuan Shuijingfang Co., Ltd.
|
13608
|
38
|
Zhejiang
|
Hangzhou Wahaha Health Food Co.,Ltd.
|
13269
|
39
|
Zhejiang
|
Inbev Doubledeer Brewing Group
|
13253
|
40
|
Guangdong
|
Guangdong Jiujiang Brewery Co., Ltd.
|
12913
|
41
|
Zhejiang
|
Hangzhou Dingjin Food Co., Ltd.
|
12227
|
42
|
Anhui
|
Anhui Kouzi Distillery Co., Ltd.
|
12212
|
43
|
Jiangxi
|
Jiangxi Site Liquor Co.Ltd.
|
11397
|
44
|
Xinjiang
|
Xinjiang Yilite Industry Co. Ltd.
|
11263
|
45
|
Zhejiang
|
Hangzhou Zhongcui Food Co.,Ltd.
|
10798
|
46
|
Guangdong
|
Qingdao Beer (zhuhai) Co., Ltd.
|
10636
|
47
|
Shanghai
|
Shanghai Shen-Mei Beverage&Food Co., Ltd
|
10583
|
48
|
Jiangsu
|
Chongqing Brewery (Group) Changzhou Tianmu Lake Brewery Corporation
|
10477
|
49
|
Inner Mongolia
|
Inner Mongolia Erdos Wine Industry Co.,Ltd,
|
10471
|
50
|
Zhejiang
|
Inbev Shiliang (Zhejiang) Brewery Co.,Ltd.
|
10400
|
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