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, Bavaria win cuts in EU cartel fines
* Bavaria cartel fine cut to 20.7 mln from 22.85 mln
* Court: EU regulator failed to prove illegal coordination
* Fines were for fixing Dutch beer prices from 1996 to 1999
(Adds Commission comments, shares)
By Foo Yun Chee
BRUSSELS, June 16 (Reuters) - Dutch brewer Heineken NV won a 10 percent cut in a cartel fine when Europe's second-highest court said EU regulators failed to prove it had violated EU laws by coordinating commercial terms with peers.
The Luxembourg-based General Court on Thursday reduced Heineken's penalty to 198 million euros ($280 million) from 219.28 million and also cut a fine for privately owned Dutch brewer Bavaria to 20.71 million euros from 22.85 million on the same basis.
The companies and a third Dutch brewer, Grolsch, were hit with a total fine of 273.78 million euros by the European Commission four years ago for fixing prices and coordinating commercial terms in the beer market in the Netherlands between 1996 and 1999.
"The Court considers that the Commission has not proved that the infringement concerned the occasional coordination of commercial conditions, other than prices, offered to individual customers in the on-trade segment," the Court said.
It said references contained in handwritten notes cited by the regulator as evidence of guilt were sporadic and brief and that the companies had submitted a plausible alternative explanation.
The Commission sought to play down the verdict, saying the Court had largely upheld its policy of imposing deterrent fines.
It also said it had now overhauled internal procedures to ensure cases would be handled promptly, without undue delays. Cartel investigations typically take several years until a decision is issued.
Heineken shares were down 0.6 percent at 39.87 euros by 1300 GMT versus a 0.4 percent decline in the Stoxx 600 food and beverage index .
An appeal by Grolsch against its 31.7 million euro fine is pending at the court. The company was acquired by world No. 2 brewer SABMiller in 2007.
InBev, which merged with Anheuser-Busch in 2008 to form the world's largest brewer AB InBev , received immunity in return for providing decisive information to the regulator.
17 Jun. 2011