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.
China. Tsingtao Brewery Fails To Acquire Xihu Beer
The parent of Xihu Beer, Asahi Breweries Itochu (Holdings), had in November last year, entrusted the management of its 55 percent stake in Xihu Beer to Tsingtao Brewery.
Following the entrustment, China Resources Breweries purchased a 45 percent stake in Xihu Beer and 16 related brands for 268 million yuan at end November last year.
In addition to gaining full control of Xihu Beer, China Resources Breweries acquired the entire equity of Huzhou Beer after purchasing a 25 percent stake in the brewer for 30 million yuan. The remaining shareholding of Huzhou Beer is held by Xihu Beer.
The acquisition will bring the total number of production bases owned by China Resources Breweries in Zhejiang province to eight.
Apart from this failure, the world's leading brewer AB Inbev had triumphed in the bidding war with Tsingtao Brewery for Henan Weixue Beer.
According to an analyst with Haitong Securities (600837), Zhao Yong, focusing on the mid to low-end beer market is crucial in the battle for market share as the room for growth in the mid to high-end beer market is limited. However, Tsingtao Brewery had been focusing its resources in the mid to high-end market.
Sales of Tsingtao Brewery’s major brands accounted for 60 percent of its total sales in the first quarter of 2011, up from 39 percent in 2008.
One of the main reasons for Tsingtao Brewery's lower than expected growth in its market share in recent years was that the sales growth of its three low-end brands were not up to expectations, added an industry analyst.
According to the company secretary of Tsingtao Brewery, Zhang Ruixiang, the company plans to increase annual sales to 10 million tons in three years, and had just obtained 200,000 tons of beer production capacities in Hangzhou, Zhejiang province, for about 100 million yuan.
Zhang said Tsingtao Brewery has seven billion yuan of cash on hand, and will not give up on its efforts to grow through acquisitions.
The cost of acquisitions had increased as there are not many brewers which meet its criteria of having 100,000 tons of production capacity, said Zhang.
4 Aug. 2011