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.
Heineken sees 2011 cost pressure after strong Q1
Heineken, whose chief brands are Heineken itself and Amstel, Europe's number one and three beers by sales, reported consolidated volumes on Wednesday that were higher than expectations and the first annual increase since the end of 2008.
Growth was strongest in Africa and the Middle East despite unrest in Egypt, but beer sales also rose in the mature and flat western Europe market, due to more drinking in Britain, France and the Netherlands.
Beer consumption also rebounded in Russia from a year ago, when a tripling of excise duty on beer struck.
The Dutch brewer repeated its forecast of a low single-digit increase in input costs per hectolitre.
It also said that higher planned marketing spending this year was likely to impact profits, notably in Europe, still the dominant part of Heineken's business. Almost half of the Dutch brewer's revenue last year came from western Europe.
The growth of volumes and drive to reduce costs resulted in a like-for-like rise of operating profit before one-offs of more than 20 percent in the first quarter.
Chief Financial Officer Rene Hooft Graafland told a news conference that this growth in the first quarter, a less significant period for the group, was not an indication of Heineken's full-year performance.
Heineken's shares were down 1.0 percent at 39.78 euros at 0913 GMT, while the STOXX European food and beverage index .SX3PO was 0.2 percent stronger.
Brokers generally welcomed the trading update and said the weakness of Heineken's shares was likely a reaction to their outperformance in recent weeks -- an 11 percent rise compared with a 7 percent increase of the Stoxx sector index in the past month. "These are a good set of numbers. You can't get away from that," said Trevor Stirling of Bernstein Research. "But the shares have really run up in the past weeks. I think expectations were high among some investors."
JP Morgan Cazenove, which has a 'neutral' rating on the stock said in a morning note it recommended investors take profits, with tougher volume comparisons and higher marketing costs in Europe later in the year.
Consolidated volume rose by a like-for-like 5.5 percent to 33.8 million hectolitres, more than the 32.8 million on average expected in a Reuters poll of 12 brokers.
First-quarter revenue was 3.6 percent higher at 3.59 billion euros, against the average market expectation of 3.57 billion euros.
Rival SABMiller (SAB.L) on Tuesday beat forecasts with a 3 percent rise of beer volumes in the first three months of 2011, led by emerging markets in Africa and Asia. [ID:nLDE73E0W7] (Editing by Mike Nesbit)
21 Apr. 2011