After visit to the pub, all's ale and hearty

Greene king IPA sales surge in china after president's patronage

China's President Xi Jinping has become the toast of a brewing company after a celebrated trip to a pub in which he downed a jug of ale with Britain's Prime Minister David Cameron.

Sales of Greene King IPA, short for India Pale Ale, that the pair drank during a visit to The Plough at Cadsden in Buckinghamshire have reportedly surged in China.

"For British ale from a Suffolk based brewery to make such inroads in China, we are really pleased about that," says Chris Houlton, managing director of brewing and brands at Greene King.

"It's grown a lot in people's minds, and it's not just great for ourselves, but also for British brewing."

Since Xi visited the pub, near Chequers, the prime ministerial country retreat, on Oct 22 - they also ate fish and chips - sales of Greene King IPA have doubled in China, Houlton says, although he acknowledges that demand for the drink in the country is still relatively small. He did not divulge sales figures.

IPA was a light beer originally brewed for consumption in India, and the name has stuck.

Greene King, founded in 1799, brews some of the best-known cask and premium ale brands in Britain, which, in addition to Greene King IPA include Old Speckled Hen, Abbot Ale and Belhaven Best.

The company, whose headquarters is in Bury St. Edmunds, Suffolk, runs about 3,100 pubs, restaurants and hotels across England, Wales and Scotland. It employs more than 40,000 people and operates two breweries, in Bury St. Edmunds and in Dunbar, Scotland.

Greene King IPA has been available in China for about 10 years, Houlton says.

"Currently it is a market that we are looking to for big improvements over the next few years. Although this huge sudden interest from China is due to your president drinking our beer, we believe there is a readiness and openness in the Chinese market for an authentic British taste and style."

He sees this as the beginning of potentially a significant boost for the exports of British ale to Asia. "Until now there has not been much exposure in China to our national drinks, but we are well prepared to manage the growth of our flagship ale, and we have a team in place dedicated to developing the Chinese market."

Houlton says the company is doing its best to cope with orders flooding in from China, but it takes between two and three months between when an order is placed and when it arrives on a shop shelf in China.

"We certainly did not anticipate people drinking quite as much and quickly in China."

The brand is also growing significantly in the UK, he says.

"Our beer is very accessible, with its hoppy aroma, flavorsome floral notes and broad appeal, and it is not too strong (in terms of alcohol by volume)."

Greene King IPA is also very smooth beer, he says.

"It is not completely identical to lager because it has got less carbonation in it, but actually it is a more easy-drinking beer, more like the ones people drink in China.

"The interest is certainly there. In the short term, your president really helped, which made us refocus our energy. But in the long term we believe the sales will be sustainable, because we are putting more focus behind it, so by the nature of that over the next few years we see good growth opportunities."

Houlton says that from his experience in China, once customers drink IPA, they tend to stick with it.

As part of the strategic development plan, the company is now trying to do more promotional work to raise brand awareness in the country and, Houlton says, given the size of the market, it is important to get distribution right.

Greene King has a visitor center in Bury St. Edmunds, and those who go there can inspect the brewery's operations.

wangmingjie@mail.chinadailyuk.com

(China Daily European Weekly 12/04/2015 page26)