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.
Champion Breweries notifies NSE of Consolidated Breweries’ acquisition bid
Consolidated Breweries plc, a subsidiary of Heineken NV Champion Breweries, said that the discussions, “if successful, could lead to a transaction that will be subject to the relevant legal and regulatory approvals, and will notify The Exchange as it becomes aware of further details.”
It will be recalled that The Netherlands-based brewer, Heineken NV, had announced in January 2011 that it bought a controlling interest in five breweries in Nigeria, a move that most analysts see as a strategy to quickly expand its presence in Nigeria - considered one of the world’s biggest beer markets yet to be fully explored.
The acquisitions, according to agency reports, raise Heineken’s market share in Nigeria to approximately 68 percent, giving it a capacity of close to 16 million hectoliters.
Though Heineken did not provide an estimate of the value of the deal when it was announced in January, a report in the Washington-based Wall Street Journal had quoted an analyst at SNS Securities Richard Withagen as saying it was worth more than $649 million or N101 billion. Company spokesman John Clark said Heineken acquired the breweries through a competitive auction process.
Heineken already owns the Star and Goldberg brands in Nigeria, where its main rival is SABMiller plc. SABMiller and Diageo plc, which markets its Guinness stout in the country, couldn’t immediately be reached to comment on whether they were involved in the auction.
Nigeria’s beer market, in a country with a population of about 150 million, has grown nine percent annually for the past 10 years. Heineken estimated that the total size of the Nigerian beer market was 16.5 million hectoliters in 2009. The five breweries will increase Heineken’s capacity by 3.7 million hectoliters.
ING analyst Gerard Rijk said the purchase is a good move as it will reduce Heineken’s competition and enable the company to expand in a highly profitable market. Mr. Rijk estimates Nigeria is responsible for around two thirds of Heineken’s profit in Africa.
Heineken plans to consolidate the newly acquired breweries into its existing Nigerian business structure in 2011. Heineken already own majority stake in Nigerian Breweries Plc.
19 Apr. 2011