10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
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.
Anadolu Efes’ net profit rises 19% in 2010
Consolidated net sales revenue of Anadolu Efes increased by 18.5% to TRL 874.6 million in 4Q2010 y-o-y, outpacing the volume growth, contributed by higher per unit sales prices in both Turkey beer and soft drink operations. Hence, consolidated net sales revenues reached TRL 4.168.8 million in FY2010, up 9.4% compared to the previous year.
Consolidated gross profit of Anadolu Efes rose by 23.1% reaching TRL 436.9 million, with a margin improvement of 190 bps to 50.0% in 4Q2010 y-o-y, due to higher gross margins in both beer and soft drink operations. Consequently, consolidated gross profit of Anadolu Efes increased by 11.3% to TRL 2,117.4 million in FY2010 compared to FY2009, with a 86 bps margin improvement to 50.8%.
Mainly due to significantly higher operating profitability in Turkey beer operations, Anadolu Efes’ consolidated operating profit more than doubled to TRL 80.1 million in 4Q2010 compared to the same quarter in previous year with a 407 bps rise in operating margin to 9.2%. Accordingly Anadolu Efes consolidated operating profit reached TLR 693.6 million in FY2010, with a 36 bps decline in margin.
Consolidated net profit attributable to shareholders increased by 19.2% to TRL 503.6 million in FY2010, contributed by higher operating profit as well as lower net financial expenses.
Anadolu Efes consolidated net financial dept decreased to TRL 770.1 million as of 2010-end compared to TRL 782.9 million as of 2009-end, leading to a decline in consolidated net dept/EBITA ratio from 0.9 times to 0.8 times in the period.
4 Apr. 2011