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.
Brewery giants looking to Asia / Suntory ready to spend 200 billion yen on M&As; rivals not sitting on hands
In a recent interview with The Yomiuri Shimbun, Saji said Suntory "has yet to do any major business in Southeast Asia, but we're committed to strengthening our business activities in such countries as Thailand, Vietnam and Indonesia."
Saji said Suntory's business activities in Southeast Asia had "lagged our operations in the United States and Europe." The company is considering spending up to 200 billion yen in coming years to acquire companies in the region, Saji said.
Suntory has set the goal of boosting overseas revenue to 25 percent of total sales from the current 20 percent within three years, he added.
Already fierce competition among brewery groups is likely to intensify in marketing not only beer but also soft drinks and foods.
Other brewery giants such as Kirin Holdings Co. and Sapporo Breweries Ltd. also are poised to bolster their operations in Asia, each keen to raise the ratio of overseas sales to their overall revenue.
Sapporo has set its sights on soft drink maker Pokka Corp., which has extensive soft drink marketing capabilities in Singapore, Malaysia and Thailand. The planned acquisition is also aimed at beefing up Sapporo's domestic nonalcoholic beverage business, according to industry sources.
Kirin's overseas sales ratio is the highest among the nation's major brewers, standing at 27 percent as of the end of 2009.
In an effort to raise this figure further, Kirin reached an agreement in late January with a major Chinese soft drink company under the umbrella of the China Resources Enterprises group, to establish a joint venture to produce and market soft drinks by June.
Asahi Breweries Ltd. President Naoki Izumiya has already indicated that his company also will be prepared to throw plenty of cash around as it steps up its own moves into Asia.
"We think it's strategically vital that we carry out mergers and acquisitions worth more than 500 billion yen," he said at an explanatory session of the firm's operations for the media in January.
Asahi hopes to increase the proportion of total revenue that comes from overseas sales from about 5 percent--the lowest among leading Japanese beer makers--to 20 percent to 30 percent by 2015.
Last September, Asahi clinched a business and capital tie-up with major Chinese instant noodle and soft drink maker Ting Hsin. Asahi said the deal had been instrumental in returning its business in China to the black for the first time in more than 10 years.
However, the breweries remain uncertain whether their envisioned operations in Asia will turn a profit in the near future.
9 Feb. 2011