Re-exchange of heavy beer

Since the beginning of this year, the board of directors and management of Heavy Beer has changed positions frequently, from the chairman to the assistant to the general manager, and the number of personnel has changed by as many as nine.

After the National Day, Zhao Zekai, who took over as the general manager of Chen Shijie Renzhong Beer Co., Ltd., where the original heavy beer group was assigned, resigned due to personal reasons only after one and a half years of his participation. On October 9th, Heavy Beer announced that Kaare Zoffmann Jessen, former general manager of Carlsberg's Yunnan and Southwestern regions, had been the general manager of Heavy Beer.

Personnel Exchange

Including the position of general manager, this year, the “big shake-ups” for heavy beer shares include former chairman Wang Keqin, directors Bai Rongen, Ma Ruchao, Peter Steenberg, vice president Jiang Tao and Yang Zhuo, total helper Lu Lutao, and supervisor Wang Dongya.

According to the announcement issued by the company, except for three people who resigned due to “work reasons” and retired from their posts, the others left for “personal reasons”.

Among them, Wang Keqin, a director and senior executive of Heavy Beer Co., Ltd., who retired due to the expiration of his term of office and his term of office, also expired. He also removed the chairmanship of Greater China of Carlsberg Brewery Hong Kong Limited. Although Wang Dongya is 55 years old this year, his term of office at the current supervisory board does not end until 2016. For reasons of work, Bai Rongen and Ma Ruchao, who have resigned from the board of Directors of Heavy Beer Co., Ltd., have already chosen another player. A large number of executives of heavy beer shares who resigned due to personal reasons went missing. According to the announcement, Zhao Zekai resigned and no longer held any position in the heavy beer shares.

In 2010, Carlsberg accepted a 12.25% stake in Heavy Beer Co., Ltd. of the Heavy Beer Group, and after the initial ownership of the company became the largest shareholder of the heavy beer shares, it began to replace the old heavy beer group. The director and general manager of the former Heavy Brewery Co., Ltd. Chen Shijie resigned from the directors as early as in 2011, and then released the position of general manager in 2013.

The 21st Century Business Herald’s financial report found that the same is the general helper or supervisor. Carlsberg made a million salary per year for the “Veteran” figures of the heavy beer group. According to the 2013 annual report, the annual salary of Chen Taifu, Deputy Chief of Heavy Beer Co., Ltd., was the highest among the entire management team, amounting to RMB 1,910,700. Before Carlsberg entered the main heavy beer stock, its annual remuneration from the company was only about 750,000 yuan. A Carlsberg internal executive told the 21st Century Business Herald reporter that this is Carlsberg's "commendation" for the original management team's support after he successfully won the heavy beer shares.

However, with the approval of Carlsberg's acquisition of heavy beer shares last year, the old heavy beer executives have remained in the heavy beer stocks. This year, Wang Dongya and Yang Zhuo left the company. At the same time, the directors and management staff assigned by Carlsberg are not stable. Apart from retirement, this year, up to 6 people resigned, including the chairman and general manager. Zhao Zekai joined Carlsberg in 2006. Before being assigned to the heavy beer company, he was responsible for the business of Carlsberg's Ningxia Xixia Jiajia Brewing Co., Ltd., and he served as the director of Carlsberg's Central and Western China Region. His tenure at J&J's general manager expired. It is until 2016.

Worst-half report

Although this time left the heavy beer shares, Zhao Zekai did not disclose whether the 21st Century Business Herald reporter and its performance, but in the first half of this year, heavy beer shares poor performance is an indisputable fact, there has been history for the first time "three declines": production and marketing Volume, operating income, and net profit all declined year-on-year. From January to June, the company achieved a beer production and sales volume of 51 million liters, a decrease of 13% over the same period of last year. The operating income of the heavy beer shares was 1.536 billion yuan, a year-on-year decrease of 8%, and its net profit attributable to owners of the parent company was 110 million yuan, a year-on-year decrease of 1.43%.

“The unpredictable performance in the first half of the year was mainly due to the continuous rain in Chongqing.” On September 21, Fang Shitao, vice president of business affairs at Carlsberg's Asia Pacific region and director of heavy beer, told a 21st Century Business Herald reporter.

Coincidentally. In the fierce competition in the beer market, production and sales of Lanzhou Yellow River beer, which is located in the northwest, have also continued to decline. The semi-annual report showed that Lanzhou Yellow River beer production dropped by 17% year-on-year, sales volume decreased by 19% year-on-year, and malt sales decreased by 20% year-on-year. Last year, the production and sales of Lanzhou Yellow River Beer fell by 2.45% year-on-year. . From January to June this year, the Lanzhou Yellow River realized an operating income of 450 million yuan, a decrease of 10% from the same period of last year.

The Lanzhou Yellow River's breweries in Lanzhou, Tianshui, Qinghai, and Jiuquan are all built under a joint venture with Carlsberg, each holding 50% of the shares.

Compared with the beer manufacturers of Carlsberg, the other four beer giants still maintain their growth momentum.

In terms of sales of beer, Tsingtao Brewery hit a record high growth rate of 15.75% year-on-year, and sold 5.31 million liters of beer in half a year. Yanjing Beer Beer sales exceeded 3 million liters for the first time, reaching 3.07 million liters. In the first half of the year, industry data from the China Brewery Beer Club showed that the industry achieved beer sales of 25.8 million liters, a year-on-year increase of 5.6%.

From January to June, the sales revenue of the national beer industry was 95.3 billion yuan, a year-on-year increase of 12%. The total profit of the industry was 6.544 billion yuan, a year-on-year increase of 10.42%. Obviously, Carlsberg has lagged behind the industry's average growth rate, both in terms of the expansion of production and sales, as well as the increase in operating income and profit levels.

Carlsberg is still in the early stage of reintegration of Chongqing Beer, and the integration of brands, channels and ideas will continue for two to three years, Fang Juntao told the 21st Century Business Herald reporter.

The semi-annual report shows that since this year, Carlsberg has integrated all aspects of heavy beer shares from product structure transformation, supply chain management, financial processes, procurement, and human resources. In the first half of the year, due to environmental pollution discharge was not up to standard, the heavy beer shares also paid more than 10 million yuan of sewage charges, and then all of its plant safety and environmental protection equipment were replaced and internal audits.

Fang said that the sales volume of high-grade and high-end products in Heilongjiang Brewery Co., Ltd. has increased compared with the same period of last year. In particular, the sales volume of Carlsberg brand introduced from Europe by Carlsberg rose significantly. Through the product structure transformation, the company's net sales revenue increased over the same period of last year.

From the perspective of the public profile, the new general manager of Heavy Beer has just grown better than Le Beer. Since serving as the general manager of the Yunnan region in 2013, Yang Guorui has increased Le Bao beer sales in Yunnan by nearly 20 times.

However, at present, the share of sales volume and operating income of Lebao’s heavy beer shares are too small to be national brands. Fang Juntao said that Carlsberg’s primary task is to stabilize the current dominant market before finding new opportunities for expansion.