China: Tsingtao Brewery has fallen into the trap of price war hurting its ranking
It's a rigorous standard, and some well-known Chinese companies suffering from weak earnings or that have been laying out piles of cash for capital expenditures over the last year didn't make the cut. These also include Tsingtao Brewery, China’s leading brewery, Business Week informed August 28.
To be sure, such brands still have vast potential, but at the moment they aren't churning out much in the way of profits. "Many famous Chinese brands including Tsingtao have fallen deeply into the trap of price wars, or the overemployment of capital," which hurt their ranking, says Frank Chen, the Shanghai-based managing director of Interbrand China. "A brand is valuable only if it can produce earnings."
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