A niche market brewing for DB beer in Shanghai

To paraphrase one of its competitor's ads, they're drinking our beer - in Shanghai.

DB Breweries this month shipped half a container of Monteith's and Tui to the Chinese city after a successful retail promotion for New Zealand products. The brewer's business development manager, Andrew Daniells, said yesterday the tiny shipment - worth just under $15,000 - was the first DB had sent to China.

But the move won't herald a flood of suds into the giant Chinese market as DB was targeting the expatriate community and more affluent locals.

"Realistically, I think it's going to be fairly niche because we're a premium product. Price is going to be high, so you're really only targeting the consumers who can afford it."

Marketing the "commodity" of beer was tough internationally.

"Unless you've got a huge marketing spend, it's just a slow steady road, looking for niches where you can get some profit."

A New Zealand Trade and Enterprise promotion leading to the DB exports was held at two upmarket Shanghai retail stores. Daniells said that if it had not been for the promotion, DB would not have considered tackling China.

Since that May promotion, a Chinese-based firm, Heng Tai, had been supplying two Shanghai bars with DB beer - and growing demand from other outlets had prompted the firm to order another 600 cases.

In November, DB's beers will be promoted by Heng Tai at the Shanghai Food Hotel China trade show, a key in-market expo.