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.
Foster’s Rejects SABMiller Bid
Foster's Group rejected a nearly $10 billion takeover offer from global brewing giant SABMiller
Foster's beer business has long been considered a potential takeover target amid global consolidation in the brewing industry. SABMiller's bid follows the recent demerger of Foster's wine business, which had struggled in recent years.
"SABMiller can conclude a transaction quickly and will continue to seek engagement with the board of Foster's to put an agreed proposal to Foster's shareholders," SABMiller Chief Executive Graham Mackay said in a statement.
Foster's said early Tuesday that SABMiller made an unsolicited, incomplete, nonbinding and conditional offer to acquire all Foster's shares for A$4.90 a share, an 8.2% premium to Monday's closing share price.
"The board of Foster's believes that the proposal significantly undervalues the company in the context of a change of control and, as such, it doesn't intend to take any further action in relation to it," Foster's said.
Sales of beer in Australia have come under pressure in recent years as specialist boutique and low-carbohydrate beers have grown in popularity.
Foster's last month carved out its underperforming wine assets into a separate listed company, Treasury Wine Estates. The wine assets have been plagued by writedowns, with an oversupply of grapes and wines from Australia in the global marketplace. The financial crisis and a strong Australian dollar have also made it difficult for Foster's to grow sales of its premium wines in key markets like the U.S.
SABMiller's joint venture partner in Australia, Coca-Cola Amatil, said earlier Tuesday the pair were amending the terms of their JV to allow SABMiller to buy shares in Foster's. The initial arrangement surrounding the Pacific Beverages JV limited SABMiller's ability to buy shares in Foster's in its own right.
The Australian beverages market has been consolidating in recent years. Kirin Holdings Co. acquired Foster's rival Lion Nathan Ltd. for about A$3.3 billion in 2009. Japanese beverage maker Suntory Holdings Ltd. bought nonalcoholic-drinks maker Frucor in 2008, while Asahi Breweries Ltd. paid US$744 million in 2009 for the Australian unit of Schweppes from Cadbury PLC, based on exchange rates at that time.
Foster's shares were up 12.8% at A$5.11 late Tuesday morning in Sydney.
Foster's is being advised by Goldman Sachs, Gresham and Allens Arthur Robinson.
21 Jun. 2011