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With the addition of a tap room at its newly constructed production facility in Gaoqiao, Anhui, China Beer almost became a true craft brewery. Through their popular Beijing beer (notably the "Bruce Springsteen" Pale Lager) and the modernistic space within their temple of beer, the brewery became a destination in itself.

But now there are signs that Anhui's craft beer boom is going bust. As their subsidies are cut, the provinces of Anhui and Sichuan are imposing higher liquor taxes. Craft beer makers have yet to fully adjust to the new policy, which is starting to affect the livelihoods of people in rural Anhui and Sichuan. According to Beerlog, domestic consumption of beer in China was 557.6 in 2010. In 2011 it was 600 million, a 2% increase. By the end of 2012, the number of regulars in China that drank beer had dropped by 2.3 million.

Industry insiders point to the decline in quality of Anhui's beers in recent months as one of the causes. Compared to their years of growth, Anhui's craft beers were less sophisticated and more mass produced. The Shanghai Expo added to domestic beer drinkers' thirst for things that were outside the realm of "Traditional Chinese Beer."

In 2012, China's craft beer market grew from a 300 million dollar industry in 2010 to raking in 1.3 billion in 2011. By the end of the year, the market was estimated to have grown to 3.5 billion dollars. In the year 2013 China Beer expects to drink 6 billion dollars worth of beer.

As many people in the Chinese craft beer industry watch over their shoulder for regulatory attempts to break their industry, there is also concern as to where the industry will head next. On the one hand, there is concern as to whether China's macrobrews will continue to try to copy the urban beer drinkers favorite brands. d2c66b5586


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