China’s Market Remains Weak!

On the morning of July 31, Budweiser APAC released its interim results for the six months ending June 30, 2025. The data showed that the company faced numerous challenges in the first half of the year, with both total sales volume and revenue declining. The profit attributable to shareholders was $409 million, a year-on-year decrease of 24.4%. Budweiser APAC’s CEO and Co-Chair, Jan Craps, stated that the group would continue to invest in flagship brands with a focused approach and rigorous execution to address current challenges and drive long-term growth.

Just days earlier, another international beer giant, Heineken, also released its first-half results. Although global sales declined, Heineken’s premium products in China maintained strong growth momentum, with sales increasing by over 30%.

Budweiser APAC’s Sales in China Drop by 8.2%

According to Budweiser APAC’s latest financial report, in the first half of 2025, the company’s total sales volume was 4.363 billion liters, a year-on-year decrease of 6.1%; revenue was $3.136 billion, down 5.6% year-on-year; profit attributable to shareholders was $409 million, a decline of 24.4%; and normalized earnings per share were 3.59 cents. In the second quarter alone, Budweiser APAC’s revenue was $1.675 billion, a year-on-year drop of 4.6%; net profit fell by 31.1% to $175 million, and total sales volume declined by 6.2% to 2.389 billion liters.

Regarding the first-half performance, Jan Craps, CEO and Co-Chair of Budweiser APAC, said: “In the first half of 2025, Budweiser APAC’s business in China was impacted by weak regional performance and ongoing softness in the on-premise channel. In South Korea, despite industry weakness, the company continued to outperform across all channels. Additionally, Budweiser APAC’s growth momentum in India continues to accelerate, with the Budweiser brand leading industry growth.”

National Business Daily·Jiangjinjiu noted that in the first half of 2025, Budweiser APAC’s sales in China decreased by 8.2%, revenue fell by 9.5%, and revenue per hectoliter dropped by 1.4%. In the second quarter, due to weak business performance and channel conditions, sales declined by 7.4%, and revenue decreased by 6.4%.

Haitong International recently pointed out that with the appointment of a new CEO and China sales head, Budweiser APAC’s organizational structure and channel strategy are undergoing deep adjustments and磨合期 (breaking-in period), with three core challenges needing urgent resolution. First, the pressure of channel transformation. The nightlife channel’s growth is sluggish, while expansion into餐饮 (dining) and household channels requires more time. Second, improving management efficiency. As the industry evolves, the integration of traditional distribution systems and emerging channels is becoming a trend, making timely feedback from终端 (end-point) data increasingly critical for operational flexibility and market responsiveness. Third, external environmental risks. As a multinational company, Budweiser APAC faces risks from international trade fluctuations, with supply chain stability, exchange rate volatility, and changing consumer preferences potentially impacting profits.

Huachuang Securities, meanwhile, stated that while Budweiser APAC’s strategic direction has been corrected, its efforts in the sub-premium segment started relatively late, and brand influence still requires time to cultivate. Additionally, building a non-on-premise channel system is not an overnight task, suggesting patience等待 (waiting) for adjustments to take effect and operations to stabilize.