Harbin International Beer Festival: Domestic brand tries to stay on top as market slows

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02:19

Raise your glasses, because the northeastern Chinese city of Harbin is hosting its annual International Beer Festival. The festival draws thousands of people every year. And Harbin Beer is the oldest beer brand in China. But as Xu Xinchen reports, domestic brands are facing challenges from imported beers.

An endless supply of beer to quench any thirst, savory food to whet anyone's appetite and performances that can put a smile on anyone's face. Beer enthusiasts around China and the world, young and old, are gathering in Harbin to celebrate the city's 17th annual International Beer Festival.

"It's really great and there are a lot of people. The atmosphere is terrific."

"It's quite special to have things like the drinking competitions and performances around."

Beer brands from the US, Germany and Russia can easily be spotted at the event. However, domestic brands are still the main attraction. But despite this, consumers in China are splurging on craft import beers instead of just going for the affordable option.

XU XINCHEN HARBIN, HEILONGJIANG PROVINCE "Domestically-produced beer became popular due to its affordability, but the cheaper price tag has come with a compromise. Some say local brews lack flavor and are weak in terms of alcohol levels."

The general manager of Harbin Beer, Yang Yonglin, says slowing growth does not necessarily mean low profits. As Chinese consumption becomes more refined, higher-end products including more expensive craft beer is growing in demand.

YANG YONGLIN, GENERAL MANAGER AB INBEV HARBIN BREWERY CO. "Consumers nowadays are more rational. Quality is the key to winning over consumers, so that they trust your brands and make their decision. Price is not the first things today's consumers think about."

While vendors can cheer for juicy returns from the huge influx of drinkers during the 12-day beer festival, at the end of day, quality is what wins over the consumer. Xu Xinchen, Harbin, Heilongjiang Province.