Tsingtao's Third-Quarter Results Broadly in Line, Though Positive Mix Shift Could Slow in Near Term

As China's most distinguished beer brand, Tsingtao saw prolonged prosperity before 2014, owing to a series of economic and industry tailwinds. The company reported high-single-digit or double-digit growth in sales volume and revenue during this period. However, after that, Tsingtao and its rivals began to face downward pressure from numerous headwinds, including the sluggish economy, weak consumer sentiment, unfavorable demographic structure, market share expansion for baijiu and wine, and competition from overseas brands, as well as stagnant growth for beer consumption per capita.