In the first three quarters of 2006, Food & Beverage Industry has represented a rapid growth trend. From January to September profit from food processing industry has hit RMB 34.5 billion, up by 48.44% year-on-year; that from food manufacturing industry has reached RMB 18.1 billion, up by 41.71% year-on-year; and that from Beverage Manufacturing industry has reached RMB 22.7 billion, up by 33.45% year-on-year.

Total Profit and Growth Rate of China's Food Manufacturing Industry in 2004-2006

Total Profit and Growth Rate of China's Beverage Manufacturing Industry in 2004-2006 

Seen from long-term trend, food expenditure proportion trends to decline, along with improvement of Chinese resident's living standard; however, absolute volume consumed on food always keeps a growth trend. Totally speaking, with improvement of Chinese resident's living standard, sum consumed on food by people will keep increasing, and consumer demands for food & beverage will have a great sustained development. Therefore, it's possible to anticipate growth of total amount in Food & Beverage Industry for the next 10 years.

2 Factors Affecting Development of China's Food & Beverage Industry
2.1 Changes in Consumer Demands
2.2 Changes in Consumer Structure 
2.3 Changes in Industry Environment----Consumption Safety
2.4 Changes in Industry Environment----Structure Adjustment 

3 Trend of China's Food Industry in 2007 ----Keeping a high-growth trend
3.1 Macro-Economy in China Develops Better and Better, Promoting Consumption Growth in Food & Beverage Industry
3.2 Resident¡¯s income Increases, Promoting Growth of Consumption in Food & Beverage Industry
3.3 Long-Term and Sustained Consumption Escalation offers larger Development Space for Brand Enterprises

4 Analysis on Key Listed Companies 
4.1 Guizhou Moutai Co., Ltd.
4.2 Sichuan Luzhou Lao Jiao Co., Ltd.
4.3 WULIANGYE YIBIN CO., LTD. 
4.4 Zhangyu Group Co., Ltd. 
4.5 Beijing Yanjing Brewery Co., Ltd.
4.6 Inner Mongolia Yili Industrial Group Co., Ltd.
4.7 SHINEWAY GROUP 

5 Conclusion