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Will Shancheng Beer be the next to disappear?

Text丨Liang Liang from China Business Strategy

On June 24, 2014, a Weibo post titled "Will Laoshancheng disappear after Chongqing Beer sold its last shares?" sparked heated discussions among netizens and caused people to worry about the future fate of this classic national brand.

Once upon a time, in Chongqing, if you walked into any night beer stand, you could hear drunk people calling out to the store owner: "Boss, bring in more boxes of Old Shancheng Beer!" Today, the Shancheng Beer that has been with Chongqing people for more than half a century is hard to find in the market, and a battle to defend "Shancheng Beer" has once again begun.

[Internal fighting escalates]

On August 2, a "Statement on Saving the "Mountain City" Beer Brand" brought to light the years of "internal fighting" between Chongqing Jiawei Beer Co., Ltd. (hereinafter referred to as Chongqing Jiawei) and Chongqing Beer Co., Ltd. (hereinafter referred to as Chongqing Beer).

Chongqing Jiawei is a subsidiary of Chongqing Beer, mainly responsible for the production of "Shancheng" brand beer. Chongqing Beer's holding subsidiary, Carlsberg Chongqing Brewery Co., Ltd., holds a 33% stake in Chongqing Jiawei.