Core Viewpoint - Budweiser APAC, the largest beer company in the Asia-Pacific region, is facing significant challenges with declining revenue, profit, and sales, particularly in the Chinese market, which has historically been a key growth driver for the company [1][2]. Financial Performance - In the first half of the year, Budweiser APAC reported total revenue of $3.136 billion, a year-on-year decline of 5.6% [1]. - Shareholder profit decreased to $409 million, down 24.4% year-on-year [1]. - Total beer sales reached 4.363 billion liters, reflecting a 6.1% decline compared to the previous year [1]. Market Challenges - The decline in revenue, profit, and sales is closely linked to poor performance in the Chinese market, where beer sales fell by 8.2% and net income decreased by 9.5% [2]. - Revenue per hundred liters dropped by 1.4%, indicating a challenging market environment [2]. - The company has faced pressure from both domestic market weaknesses and the rise of local competitors like China Resources Beer and Tsingtao Brewery, which are seeking to capture higher-end market segments [2]. Historical Context - Budweiser APAC's sales in China have been on a downward trend, with a compound annual growth rate of -2.6% from 2018 to 2024, which is below the national average growth rate for large-scale beer production [2]. - Last year, the company experienced a significant decline in performance in China, with sales dropping by 11.8% and revenue falling by 13%, resulting in a market share decrease of 149 basis points [2]. Strategic Actions - In response to the declining performance, the company has implemented three key strategies: layoffs, price increases, and changes in leadership [2]. - The workforce in China was reduced from 21,181 to 18,401 employees, a decrease of 2,780 staff members [3]. - Despite reports of price increases for certain products, the financial data for the first half of this year indicates a simultaneous decline in both volume and price [3]. Leadership Changes - In February, Budweiser APAC announced the resignation of CEO Jan Craps after a seven-year tenure, with Cheng Yanjun taking over in April [4]. - Cheng, the first Chinese CEO of Budweiser APAC, is seen as having the critical task of reversing the company's fortunes in the Chinese market [5]. - However, the performance under the new leadership has not met expectations, particularly during the peak sales season in the second quarter [6].