10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
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.
Anheuser-Busch InBev to redeem outstanding 1.25 billion USD prior to maturity
Such notes were exempt from registration under the Securities Act of 1933, as amended and were voluntarily exchanged by ABIWW for freely tradable notes registered under the Securities Act with otherwise substantially identical terms and conditions in a tender offer that closed on 14 March 2011. The Registered Notes are governed by the Base Indenture dated 16 October 2009 and the Sixteenth Supplemental Indenture dated 15 March 2011 between the ABIWW and the Trustee (“Sixteenth Supplemental Indenture”, the January Base Indenture, October Base Indenture, First Supplemental Indenture and the Sixteenth Supplemental Indenture, together the “Indentures”). The Notes will be redeemed in accordance with the terms and conditions of the Indentures and the Notes.
As a result of this transaction, non-recurring finance costs of approximately 180 million USD will be recognized during the second quarter of 2011 as the redemption price is expected to differ from the amortized cost of these Notes. Additionally, non-recurring finance costs will include an incremental accretion expense and a one-time mark-to-market adjustment of approximately 20 million USD as a portion of the interest rates swaps, hedging borrowings under these Notes, will no longer be effective.
24 May. 2011