Quenching the nation's new found thirst for ale

"The ZX Ventures craft brewery has been tailored to meet the demand for the small-scale production of high-quality beer," says Pedro Aidar, head of specialties ZX Ventures APAC North.

"Drinking craft beer is a developing trend in China. We chose to set up the brewery in Wuhan because we have had over 30 years' experience selling beer in the city, and we have noticed that consumer preferences have switched from traditional beer to craft beer," says Aidar.

Although the market share of craft beer remains relatively small, sales have witnessed a huge increase in China in recent years.

According to industry research website Chinairn.com, the market share for premium beer is around 4 percent compared to traditional beer. But this share accounts for more than 18 percent of profits in the industry, while the market is expanding at the rate of 40 percent a year.

Eyeing the growing market, Wang Deliang, brewery research director at the China National Research Institute of Food & Fermentation Industries, says that investment in the craft beer sector has been expanding in recent years as beer makers chase profits of up to 30 percent.

"Limited supply, unique flavors, a distinct experience and high-end branding all appeal to the younger generation of consumers who like to try something different," says Michael To, marketing specialist with Shanghai-based Focus Strategy consultancy.

AB InBev also recognize the potential of China's craft beer market.

"In recent years we have seen consumer preferences switching to a more diverse range of premium products, and this market share has continued to see strong growth," says Aidar. "So, setting up a brewery to meet the demand for top-notch products was an easy choice."

With demand for craft beer on the rise in China, they soon realized that the appetite of Chinese consumers could not be met by relying on imported beers alone, where some of the flavor and taste can be lost during long-haul transportation. With this in mind, the Wuhan brewery has been tasked with the mission of creating locally-produced craft beers of the highest quality.