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.
Carlsberg and SABMiller invest further in China
SABMiller’s Chinese joint venture with China Resources Enterprise, CR Snow, is to acquire the remaining 55 per cent and 25 per cent stakes in Hangzhou Xihu and Huzhou breweries from Asahi Breweries Itochu, the group announced today.
The US$47m deal strengthens CR Snow's position in Zhejiang province, which is one of the largest markets in central China, said the brewer.
The acquisition of the Hangzhou Xihu Beer and Huzhou Brewery follows recent strategic transactions to build CR Snow's presence in key markets and grow value, said the firm.
Last month, CR Snow announced it had acquired Heineken-APB's 49 per cent equity interest in Jiangsu Dafuhao Breweries and its 100 per cent equity interest in Shanghai Asia Pacific Brewery.
Carlsberg’s new venture
Meanwhile Carlsberg announced it will own 30 per cent of a new joint venture with its China unit Chongqing Brewery Co (CBC) along with Chongqing Light Textile Holdings (CLT), CBC’s other main shareholder.
The new company, Chongqing Xinghui Investment (CXI), will operate 12 breweries in China.
CBC will contribute to the joint venture through its ownership of five breweries, CLT will contribute its ownership of seven breweries and the Carlsberg Group will make a contribution of approximately RMB 200m (approximately DKK 160m).
In 2010, the Carlsberg Group increased its ownership in CBC, becoming the largest shareholder in the company.
At the time, the Carlsberg Group said it was keen to expand its Chinese operations and further strengthen its cooperation with CLT and CBC.
The new transaction is conditional upon a number of steps and approvals by authorities and minority shareholders, said Carlsberg.
China’s beer growth
The Asian beer market is to account for 38 per cent of total beer consumption by 2015, according to Canadean.
The beverage research company said that with the Asian market dominated by China, in five years time it is predicted that the country will account for over a quarter of all beer consumption.
The Chinese beer market is forecast to reach 573 million hectare litres (mhls) by the end of the forecast period, over twice the size of the US, the second largest beer market in the world.
3 Aug. 2011