Tsingtao Brewery

Tsingtao Brewery Co. Ltd.
Company type	Public
Industry	Brewing
Predecessor	Anglo-German Brewery Co. Ltd.
Founded	August 15, 1903; 123 years ago in Qingdao, China
Founder	Anglo-German partnership
Headquarters	Qingdao, China
Area served	Worldwide (62 countries and regions)
Products	Beer (including Tsingtao Beer, Tsingtao Draft Beer, Tsingtao Dark Beer, Tsingtao Spirulina Green Beer)
Parent	Tsingtao Brewery Group
Website	www.tsingtaobeer.com

Tsingtao Brewery Co. Ltd. () ranks as the second largest brewing company in China, commanding roughly 15% of the domestic beer market and representing half of the nation's beer exports. Established in 1903 through an Anglo-German partnership, the brewery was managed by German brewers in Tsingtao (now known as Qingdao), which was then part of the Kiautschou Bay Leased Territory under Imperial German control.

By 2016, Tsingtao had become the second most widely consumed beer brand worldwide, holding a 2.8% share of the global beer market and experiencing continuous growth since 2009. It stands as the sixth biggest brewery on a global scale. The brand’s emblem showcases Huilan Pavilion, a notable Qingdao landmark located on the southern coast at Zhanqiao Pier.

History

The origins of Tsingtao Brewery trace back to August 15, 1903, when it was founded by the Anglo-German Brewery Co. Ltd., a joint stock company headquartered in Hong Kong with both English and German stakeholders. Initially called Germania-Brauerei Tsingtao Co., Ltd, it had a capital investment of 400,000 Mexican silver dollars divided into 4,000 shares. Its primary clientele consisted of European residents living in China.

Supervisory Board Founders

John Prentice, SC Farnham, Boyd & Co., Shanghai
Alexander McLeod, Gibb, Livingston & Co., Shanghai
C. W. Wrightson, Fearon, Daniel & Co., Shanghai
Max Slevogt, Slevogt & Co., Shanghai
J. Jürgen Block, H. Sietas & Co., Qufu

Directors of the Brewery

Heinrich Seifart (1904–November 1907)
Ernst Siemssen (November 1907 – 1914)

Head Brewers

R. Schuster (1904–05)
Martin Wehle (1906–14)

The brewery produced its first batch of beer on December 22, 1904.

Following the Siege of Tsingtao during World War I, control of Qingdao shifted to Japan. On August 16, 1916, the company was dissolved and sold to Dai-Nippon Brewery (which later divided into Asahi Breweries and Sapporo Brewery). At that time, German shareholders held approximately 70% equity. The Japanese government sanctioned the sale in September 1916, and shareholder payments were completed by April 1921.

Nationalization

After Japan’s defeat in World War II, ownership of Tsingtao Brewery transferred to the Tsui family under oversight from the Nationalist government based in Nanjing. This arrangement continued until 1949 when the newly founded People's Republic of China seized shares from the Tsui family and transformed Tsingtao into a state-owned enterprise.

Privatization

During the early 1990s, the company underwent privatization and in 1993 merged with three other breweries from Qingdao, forming Tsingtao Brewery Company Limited. That same year, in June 1993, it became the first Chinese enterprise to be listed on the Hong Kong Stock Exchange.

Anheuser-Busch once held a 27% ownership stake in the company. Additionally, Tsingtao managed several other breweries within China, some of which produced Tsingtao Beer.

On January 23, 2009, Anheuser-Busch InBev divested a 19.9% share to Asahi Breweries for $667 million, making Asahi the second largest shareholder after Tsingtao Brewery Group. Later, on May 9, 2009, Anheuser-Busch InBev sold its remaining 7% stake to Chinese entrepreneur Chen Fashu for $235 million.

In January 2017, Asahi revealed intentions to divest its approximately 20% holding in Tsingtao, valued near US$1.1 billion.

Beers

The flagship product is Tsingtao Beer, a pale lager with a notable hop profile and an alcohol content of 4.7% abv, representing the majority of the brewery's production. There is also an unpasteurized variant marketed as Tsingtao Draft Beer. Historically, the brand emphasized its use of mineral water sourced from the Laoshan Spring, a unique feature now restricted to beer brewed solely in Qingdao.

The brewery offers additional beer varieties primarily targeting the domestic market. Among exported products are Tsingtao Dark Beer (5.2% abv) and Tsingtao Spirulina Green Beer (4.5% abv), a green pilsner colored with spirulina and promoted for its health benefits. Alcohol levels may differ between domestic and export editions.

Export orientation

During the 1980s, due to China's relatively undeveloped beer market, the brewery concentrated efforts on international markets. The economic reforms of early 1980s China facilitated export activities while domestically competing with both local and foreign beer brands.

The primary export division was the Hong Kong-based "Good Harvest of Five Grains Corporation," which established a wholesale network comprising up to 300 companies and managed local marketing in Hong Kong.

Tsingtao Beer entered the United States market in 1972 and has since remained the top Chinese beer there despite competition from Zhujiang and Yanjing brands. As of July 2018, distribution in the UK and Ireland was handled by C&C Group PLC. The Tsingtao brand is available in 62 countries and regions worldwide and accounts for more than half of China's beer exports. In 2010, Tsingtao reported a 6.6% increase in revenue year-over-year from sales to Hong Kong and other international markets.

National marketing

Prior to 1949, the brewery relied on imported raw materials along with water from Laoshan Mountain. After the Korean War and subsequent Western embargoes, it transitioned to using domestic raw ingredients, supported by government initiatives encouraging Shandong farmers to grow hops and barley through incentives such as free seed distribution.

Following this shift to local inputs, the brewery intensified its nationalist marketing campaigns while preserving its international brand image.

International Beer Festival

In 1991, the brewery sought approval to organize the Qingdao International Beer Festival, receiving endorsement and sponsorship from Qingdao's municipal government. The first festival commenced on June 23, 1991, and has been held annually ever since. Named "International Beer Festival" to appeal to both foreign visitors and domestic consumers, its primary purpose was enhancing brand awareness within China.

Typically conducted over two weeks in late August, the festival features citywide celebrations showcasing various international beers alongside Tsingtao products. Today, it functions not only as a promotional platform for Tsingtao Brewery but also as a catalyst for fostering Qingdao's beer culture growth.

Controversies

On October 23, 2023, a video circulated widely on social networks depicting an employee of the brewery urinating into a beer tank, which sparked significant public concern.

External links