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.
SABMiller lifts LatAm beer target on economy boost
* Sees Q1 regional beer volumes up around 6 percent
* Looks at further opportunities in region (Adds detail)
By David Jones
LONDON, July 5 (Reuters) - SABMiller , the world's No. 2 brewer, raised its forecast on Tuesday for beer volume growth in its biggest region, Latin America, due to price cuts and a strengthening economic recovery.
The London-based brewer of Grolsch, Peroni and Miller Lite, which is bidding for Australian group Foster's , said regional beer volume in April-June was up around 6 percent while its key Colombian market had seen 10-percent plus volume growth in June.
"Our volume target is going up as economic recovery is now feeding through to consumption, and due to our strategy of making beer more affordable," Karl Lippert, president of SABMiller's Latin America region told an investor seminar.
The better performance and raised target contrasted with its year to March 2011, when regional beer volumes were flat and Colombia -- which accounts for more than half of regional profit -- saw volume drop 6 percent due to tax rises and heavy rains.
The brewer, which makes 31 percent of its profit from the region, said the recovery in its first quarter of April-June was very good in Colombia, Panama, Honduras and El Salvador, modest in Ecuador and soft in Peru and Argentina.
The group which makes Aguila, Club Colombia and Cusquena beers in the region, raised its 3-5 year target for volume growth to 5-8 percent a year from 4-6 percent, while cutting its revenue goal to 2-4 percent from 3.5-5.5 percent due to price cuts.
Lippert said the group was looking at expansion in Latin America away from its strongholds in Colombia and Peru after it made a brewery acquisition in Argentina last year, entered the Brazilian beer market in January, and the Bolivian beer market three weeks ago.
"There are opportunities going forward, Brazil is one opportunity on the table and you would expect us to have a look," said Lippert, adding the group had started selling its Miller Genuine Draft beer in southern Brazil this year.
Brazil is the world's third-largest beer market after China and the United States and, with a population higher than the rest of South America, is an obvious target for growth. The market is dominated by the world's largest brewer Anheuser-Busch InBev with a market share of near 70 percent.
Brazil's second-largest brewer, privately owned Schincariol, has been reported to be up for sale for around $2 billion, and SABMiller and world No 3 Heineken have been reported to be interested.
Lippert declined to comment further on Brazil and also on Foster's after SABMiller launched an A$11.2 billion ($12 billion) cash bid including debt last month for the Australian brewer, which the Foster's board immediately rejected.
SABMiller shares were 1.3 percent higher at 2,320 pence by 1320 GMT in a flat London stock market. ($1 = 0.931 Australian dollar)
6 Jul. 2011