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 Expects Colombia Volume Sales Rebound In 2011
Richard Rushton, president of SABMiller's Colombian unit Bavaria, said in an interview Tuesday that "we would expect volumes to start to reflect growth in the low to mid single digits in a reasonable short term such as in the next 12 months."
The company's medium-term guidance is for 4% to 6% volume growth, but Rushton said he was unsure that growth for this year would be within that range.
"I'm not sure it's going to be 4% to 6%," he said.
The company's main concern now is a harsh rainy season, which can affect distribution. "I'm a little cautious until we see the clouds lift," he added.
SABMiller's volume sales declined 6% for the 12 months through March 2011, the company said in a statement. The contraction in Colombia was fueled by an emergency tax levied in February 2010 that the government used to plug a deficit in public health services.
After keeping prices mostly unchanged for a few years, the company also hiked prices by 8.3%, something which "had an immediate impact on our volume performance," Rushton said.
The last tranche of the tax hike came into effect in February 2011, increasing the consumer tax on beer from 14% to 16%, but the company decided not to increase prices.
"We're pursuing price constraint aggressively," Rushton said.
Adding to the impact of the higher tax on volume sales, 2010 was an electoral year in which alcohol sales were banned during several weekends. Another woe facing the company was a devastating streak of torrential rains in November and December that crippled roads and made several regions inaccessible to delivery trucks during months in which beer consumption usually jumps.
"A perfect storm hurt us," Rushton said.
But the impact of the higher tax is "bottoming out," he said, and the company posted beer volume growth in February and March from a year earlier.
"We're seeing reasonably encouraging signs that the clouds are lifting," he said.
An ongoing concern, however, is the downpours that have recently restarted in much of the country, once again blocking key roads. But it is only a matter of time before the rains cease, Rushton said.
"We're optimistic that we will see the end of this weather and with the end of the weather we will start to post some volume growth," he added.
SABMiller has a dominant position in Colombia, controlling 97% of the beer market. Strong economic growth should filter down to higher consumption, which should help fuel growth, Rushton said.
"We're cautiously optimistic that some of the benefits of higher economic growth will filter through," he said. Government officials have said that economic growth in 2011 could surpass 5.5%.
The government is taking the right steps in making efforts to upgrade Colombia's shaky infrastructure and broaden its tax base, something that could also help the unit, Rushton said.
"The government is trying to allow the private sector to grow and to create conditions for growth," he said. SABMiller pays nearly 3.7% of the total national tax intake.
The government is also taking steps to curb the sale of contraban and adulterated liquor, something that should help boost SABMiller's beer sales, Rushton said.
Beer consumption in Colombia is still below other countries in the region, something that gives "plenty of room for growth," he said.
20 Apr. 2011