Big Beer, Big Headaches: China Resources Beer Issues Major Profit Warning

In the world of brewing, being a “major player” is an understatement for China Resources Beer (CR Beer). They are the giants behind Snow Beer, which by volume is often cited as the best-selling beer brand on the planet. Operating a massive network of over 60 breweries across China, they control roughly 25-26% of the Chinese beer market—the largest in the world.

However, even being the biggest shark in the pond doesn’t protect you from the ripples of other markets. Today, CR Beer released a profit warning that has sent a chill through the industry.

The Numbers: A Sharp Decline

CR Beer expects its profits for 2025 to drop significantly, projecting a net profit between RMB 2,920 million and RMB 3,350 million. Compared to the RMB 4,759 million they brought in during 2024, that’s a staggering decline of 30% to 39%.

The Culprit: A Bad Bet on “Baijiu”

The reason for this drop isn’t actually that people stopped drinking beer. Instead, it’s a massive goodwill impairment (essentially an accounting write-down of value) worth nearly RMB 3 billion.

This impairment is tied directly to their 2023 acquisition of a majority stake in Guizhou Jinsha Jiaojiu Winery, a producer of Baijiu.

What is Baijiu? If you haven’t encountered it, Baijiu is a clear, high-alcohol (usually 40-60% ABV) Chinese grain spirit. It is the most consumed spirit in the world by volume, deeply embedded in Chinese business culture and banquets. However, the market is currently struggling. A combination of “softened demand” and a shift in consumer habits has meant that CR Beer’s expensive foray into spirits isn’t paying off as planned.

The “Beyond Beer” Gamble

CR Beer isn’t alone in trying to diversify. For years, “Big Beer” global leaders have been looking “Beyond Beer” to find growth as traditional lager sales stabilize. The success of these ventures, however, is a mixed bag:

• The Success Story: AB InBev (the folks behind Budweiser and Stella Artois) has seen major wins in this space. In their recent 2025 results, they reported that their “Beyond Beer” portfolio (which includes spirits-based ready-to-drink brands like Cutwater and Nütrl) grew revenue by 23%. Even more impressive, their non-alcoholic beer portfolio (led by Corona Cero) saw a massive 34% revenue surge.
• The New Frontier: This shift toward moderation is more than just a trend; as we’ve recently noted, the non-alcoholic (NA) beer market is on a trajectory to rival the entire stout category in scale within the next decade. Major brewers are finding that staying within the “beer” family—albeit without the alcohol—is currently a much safer bet than jumping into spirits.
• The Cautionary Tale: While some are finding gold in alcohol-free brews and canned cocktails, CR Beer’s struggle shows the risk of moving into entirely different, volatile categories like high-end spirits.

For the beer enthusiasts at b33r.club, the takeaway is clear: while your favorite lager is likely safe, the companies brewing it are increasingly distracted—and sometimes burned—by trying to be everything to everyone.