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.
Ethiopia: Agency’s Revised Plan May Thwart Heineken’s Market Entry
Bedele Brewery, Harar Brewery, Meta Abo Brewery, Awash Winery, National Liquor Factory, and Asela Malt Factory are to remain under the supervision of the PPESA for the next five years as the growth potential of the enterprises does not merit privatisation, according to the agency's revised five-year strategic plan that was issued in March 2011.
The tender for the privatisation of Bedele and Harar, which started operations in 1993 and1983, respectively, was floated in January 2011.
Heineken's initial offer for Bedele, which has an annual production capacity of 75 million bottles, was 85.2 million dollars. This exceeded those made by Carlsberg Brewery (68 million dollars), BGI Ethiopia (64 million dollars), and South West - SABMiller (70 million dollars).
Bedele exports the beer, which has a 4.2pc alcohol content, to the United States (US).
Although most of the raw materials used to make it are produced locally, the company imports yeast, which can be reused three to four times, from Europe as well as malt from Germany when there is a domestic shortage.
The Dutch brewery's offer of 78.2 million dollars was the only one received by Harar, which has an annual production capacity of 67 million bottles.
Heineken was formed in 1952 and named after the founder. The company, which has 140 breweries in more than 70 countries, achieved a net profit growth of 19.7pc in 2010, making it the world's third largest brewer.
"The PPESA has finalised its evaluation of the business plan and technical proposal submitted by Heineken," Asebe Kebede, deputy head officer of corporate communications for the agency, told Fortune. "What remains is for the board to decide on the matter."
However, the revision of the strategic plan has thrown a spanner in the works.
"If interest to buy these companies is expressed by the private sector, the government will decide whether the offer serves the interests of the country," Asebe said. "Plans can move forward or backwards, depending on the prospects. The process should not be an issue; the question is what would best serve the people of Ethiopia."
The final decision rests with the board, according to Asebe who could not indicate a deadline.
"The board includes senior government officials who might be burdened with their duties," he told Fortune. "Upon receipt of the evaluation report they could announce their decision within two weeks."
The Amstel-Heineken brand is one of the largest in the world. It brews and sells more than 200 international, regional, local, and specialty beers and ciders. This includes Primus, Birra Moretti, Sasres, Cruzcamp, Foster's, Strongbow, Bulmer, Newcastle Brown Ale, Zywiec, Ochota, Kingfisher, Tiger, Dos Equis, Star, Tecate, and Sol.
BGI Ethiopia, Ethiopia's biggest brewer (considering sales), accounted for about half of the 300 million litres of beer sold in the country during the 12 months before July 7, 2009, according to Access Capital.
Beer consumption is expected to grow by about 15pc annually for five years, it projected.
20 Apr. 2011