Tsingtao is Chinas second largest brewer

Tsingtao is China's second largest brewer

Tsingtao Brewery's first half profits slumped 11% as China's second-largest brewery suffered amid weak consumer spending in the country, according to a report.

Net profits fell to CNY1.07bn (US$160m) in the six months to the end of June compared to CNY1.2bn a year-prior, Bloomberg reported yesterday. Sales fell 8% to CNY14.7bn.

A slowing Chinese economy has dented consumer confidence while beer was hit in the Summer by wide-spread flooding that killed an estimated 300 people. The H1 declines continue a difficult few years for Tsingtao after 2015 profits dropped by 20% and sales by 5%.

Tsingtao rivals such as Anheuser-Busch InBev and China Resources Beer (CRB) have responded to a tough beer market in China by moving their brands up the value chain. In 2015, 49% of CRB's sales volumes came from the above-mainstream segment, compared to 29% in 2012, according to the company

Click here for the facts on CR Beer and the world's largest beer brand, Snow

CRB is set to take full control of the Snow joint-venture in the wake of partner SABMiller's takeover by AB InBev.