HONG KONG, Jan 8 (Reuters) - China Resources Beer (Holdings) Co Ltd said on Monday it had “moderately” raised prices of some of its products in certain regions, becoming the latest Chinese drinks maker to confirm price increases in response to higher packaging, raw material and labour costs.
The owner of China’s top beer brand, Snow, said it had adopted various measures, including lean marketing and production as well as product refinement, to absorb the cost pressure. It gave no further details on the price increases.
The company’s shares hit a record high in Hong Kong on Friday on press reports that brewers, including China Resources and rival Tsingtao Brewery Co Ltd, raised some prices from Jan. 1 citing rising costs of materials, labour, transportation and for environmental protection.
A stronger pricing environment in China is also good news for European alcoholic drinks companies, said Liberum analysts, pointing out that Carlsberg, Anheuser-Busch InBev , Remy Cointreau and Pernod Ricard boast the highest China sales.
Tsingtao Brewery, the maker of China’s best known Tsingtao beer, said on Friday that it had raised product prices by up to 5 percent, in a bid to offset pressure from higher costs of production and raw materials.
Chinese liquor maker Kweichow Moutai said last month it planned to raise prices by an average of 18 percent this year.
Reporting by Donny Kwok in Hong Kong; Additional reporting by Martinne Geller in London; Editing by Biju Dwarakanath and Jane Merriman