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.
Analysis of beer market in China
China’s transition to a “new normal” reality backfired on the brewing industry unexpectedly. Stagnation and subsequent market decline resulted from dynamic social and economic changes. There has emerged a “two speed” market where the medium class significance is growing, yet the share of main beer consumers, “blue collar” is decreasing. Also the inflow of consumers is shrinking, as demographics stopped being a growth driver. Finally, beer is giving way to other alcohol drinks....
UK. Marston’s: managed pub sales boost
The company said its performance has been “encouraging” and “robust” despite the difficult trading environment. Profitability is in line with expectations.
At Marston’s Inns and Taverns, its managed house division, like-for-like food sales grew 5% over the 42 week period with like-for-like wet sales up 1.7%.
In the last 10 weeks, like-for-likes were up 2% against a strong trading period last year, which included the World Cup and good weather. Operating margin has improved compared to last year, it said.
In Marston’s Pub Company, its tenanted and leased pubs division, underlying profit trends have continued to improve. Like-for-like profits are estimated to be 0.5% ahead of last year.
It attributes this rise to the continued rollout of its franchise Retail Agreement, where licensees earn a percentage of takings and pay no rent. The agreement is now operating in around 300 pubs.
The deal sees licensees typically earn 20% of turnover to pay themselves and staff, with Marston’s buying everything else and paying the bills.
Marston’s also said that those pubs expected to stay on traditional agreements for the long-term are trading ahead of last year.
Its own brewed beer volumes are up around 2% on last year at Marston’s Beer Company with premium cask ale up 4%.
Net debt and cash flow is in line with expectations and it has completed 10 new build pub-restaurants to date. Performance of new builds continues to be ahead of its original targets.
“We are encouraged by the resilience of our business in the year to date,” said chief executive Ralph Findlay. “Our focus on offering value for money with high service standards in a quality pub environment is generating strong consumer appeal and maximising returns on our investment programmes.”
28 Jul. 2011