Beer firms profiting amid austerity drive

Beer is outstripping liquor and wine in terms of profitability in China, according to industry sources, and it's one of the few bright spots for alcoholic beverages amid a government crackdown on luxury spending that's hit sales of more prestigious drinks.

He Yong, secretary-general of the beer branch of the China Alcoholic Drinks Association, told the 2014 China Beer Industry Annual Summit in Beijing on Wednesday that beer is the only part of the alcoholic beverage market that saw its profits grow last year. Beer producers' profits were up 21.5 percent last year.

Revenue in the beer industry reached 181.4 billion yuan ($29 billion) last year, up 9.3 percent. Output grew 4.6 percent to 50.62 million kiloliters.