Budweiser is in a difficult position after choosing Yanjun Cheng as its new CEO, even as the company struggles with lackluster earnings in China. The beer giant’s decision comes as weak consumer sentiment stays on top of its business, resulting in negative financial results. Jan Craps has been in the role for seven years and will be leaving Cheng has taken over after a troubling fourth quarter, in which Budweiser reported a net loss of $16 million, compared to the $6.72 million profit analysts had expected. Further, the company’s revenue has been on the decline for four straight quarters and the company has not yet provided an outlook. The company has stated that recovering market share in China is one of its top priorities. However, the company’s full year volume in the country declined by 11.8% and its total market share shrank by 149 basis points. The difficulties of Budweiser are consistent with those of the wider industry, with its rivals also posting declines. For instance, Carlsberg also suffered from a decline in volume and revenue in China, blaming a weak consumer environment and adverse summer weather. Analysts say that Cheng’s promotion is an attempt to shake up Budweiser’s China business, which is in turmoil. Some market watchers think that new approaches may be required to refashion the company and regain market position in the face of changing consumer trends. China’s beer market remains turbulent and Budweiser must weather the storm to regain its former strengths.
Budweiser Faces Turmoil as Yanjun Cheng Takes Over as CEO
