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.
Singapore’s Court of Appeal dismisses appeals by two European banks against Asia Pacific Breweries
The abovementioned Suits arose from claims that were part of the approximately S$117 million, which Chia Teck Leng fraudulently obtained from four banks, SEB, HVB, Mizuho Corporate Bank Ltd (“Mizuho”) and Sumitomo Mitsui Banking Corporation (“Sumitomo”). Mizuho and Sumitomo withdrew their claims with costs payable to APBS during the course of the trial.
Commenting on the favourable ruling, Mr Roland Pirmez, CEO of Asia Pacific Breweries Limited said, “We are very pleased with the Court’s decision, which strongly reinforces the Company’s stand that APBS was itself a victim of fraud and is not responsible to repay loans which it had not authorised in the first place and which it knew nothing about. We are glad that this legal suit has come to an end with a final judgment that completely vindicates APBS.”
Pursuant to the judgment of the Court of Appeal, which is final, SEB and HVB’s claims of approximately USD 27 million and USD 32 million respectively against APB have been dismissed save for a ruling that APBS has to return to SEB a sum of S$347,671.123 that was transferred from SEB to APBS’s account. APBS did not dispute that this sum had to be returned to SEB in the SEB appeal. SEB and HVB have to pay APBS its legal costs for defending their respective High Court suits as well as appeals.
APBS would like to thank its lawyers, Drew & Napier LLC, for their counsel and efforts in defending the claims and appeals. APBS’s business is operating as usual and has not been in any way affected by the legal suits.
24 May. 2011