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.
China. Tsingtao Brewery first quarter profit up 40 pct
Tsingtao, in which Asahi Breweries holds a stake of more than 19 percent, said its net profit rose to 393.4 million yuan ($60.4 million) for the three months through March, from 280.9 million yuan a year earlier.
'During the reporting period, the company maintained the satisfying sales momentum, especially as driven by the rapid growth of the mid-high-end products,' the company said in a filing with the Hong Kong stock exchange on Thursday.
Sales volume rose 22 percent year-on-year to 15 million hectolitres, with sales volume of Tsingtao rising 36 percent.
Analysts are positive on Tsingtao's business outlook as China's beer consumption continues to rise, and the firm continues to grow its sales through acquisition.
Analysts had expected Tsingtao to post more than 20 percent rise in sales volume for the first quarter of 2011, as distributors stocked up prior to increase in its beer prices.
They gave no forecast for its quarterly earnings.
Tsingtao hiked prices of its main brands by about five percent in the first four months of 2011 to help offset rising packaging and labour costs, and barley prices, analysts said.
This was prompted by a 3-4 percent year on year increase in packaging costs, 30-40 percent rise in barley prices and a 10 percent increase in labour costs, Barclays Capital said.
Barclays expects stable gross margins of 35.1 percent for Tsingtao in 2011 as compared to 35.2 percent in 2010.
'Facing the rising barley prices and packaging costs, it is necessary for it (Tsingtao) to hike price further in order to maintain gross margin at the current level of about 35 percent,' said William Lo, analyst at Ample Capital.
Tsingtao aims to boost annual production capacity to 100 million hectolitres in the next five years. It is China's second-largest brewer by volume after CR Snow, a joint venture between China Resources Enterprises and SAB Miller .
It also competes with Heineken, Carlsberg and Kingway Brewery in China, the world's biggest beer market.
Tsingtao's Hong Kong-listed shares are up 1.97 percent so far this year, compared with a 3.34 percent rise in the broader Hang Seng Index. ($1 = 6.512 Chinese Renminbis)
29 Apr. 2011