Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Beer market of Vietnam: “Young tiger”Vietnam is one of the few big beer markets that continue to grow steadily. The beer popularity results from its low price, street consumption culture, and social motives. The outlooks of beer market as well as the Vietnamese economy inspire optimism, though the country is heavily dependent on export of goods. The state regulation can be called liberal, but the key risk for brewers is harbored in intensive rising of excise. Within TOP-4 there are two leaders, Sabeco and Heineken that grow at the fastest rates. The first company effectively employs its capacities, the second one focuses on marketing technologies. Almost 80% of the market belongs to century-old brands, yet the middle class and the youth are shifting their interest toward international premium that is growing taking share from the mainstream.
Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
SABMiller posts better than expected European volumes
The UK-listed brewer continued to benefit from its strong presence in emerging markets. Lager volumes were up 12 per cent on an organic basis in Asia, and in Africa quarterly lager volumes rose 12 per cent, boosted by the renewal of business activity in Zimbabwe.
The only negative point on the emerging market map came from Latin America, where lager volumes were down one per cent. Colombia was largely responsible for the decline as the country recorded a five per cent fall in lager volume, due to a new emergency sales tax on beer and exceptional bad weather.
SABMiller said: “Heavy rain and flooding throughout the quarter in Colombia caused large scale damage to housing and infrastructure, impacting consumer demand and product availability, and culminated in a national state of emergency in December.”
It is into this environment that Karl Lippert, takes over as president of SABMiller Latin America. The former president of Colombia-based brewery Bavaria S.A. replaces Barry Smith, who retired in December.
Meanwhile, in Europe, sales held steady in comparison to last year, thanks to continued strong growth in the UK and significantly higher volumes in the Ukraine. This result was well ahead of analyst expectations.
“Europe’s performance was blow-out,” said Simon Hales, an analyst at Evolution Securities in an investor note.
Meanwhile, in the US, where SABMiller operates the MillerCoors joint venture with Molson Coors, volumes continued to struggle.
The company said: “MillerCoors domestic sales to retailers in the quarter were down 2.5 per cent against the prior year, in an industry and economic environment which remain testing.”
Alongside the main brewing business, SABMiller said its soft drinks performed well in the quarter, with organic volumes up 5 per cent in the quarter.
Although the overall results for Q3 beat market analyst expectations, SABMiller said the group’s financial performance was in line with its expectations.
24 Jan. 2011