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.
AB InBev cautious over challenging times in U.S.
The brewer of Budweiser and Stella Artois said it was monitoring the U.S. economy closely, but was more positive for its second biggest market Brazil where it expects beer volumes to recover in the second half after a dip in the second quarter.
Chief Financial Officer Felipe Dutra said on Thursday that he remained cautious on the United States, saying he was watching the economy closely after quarterly beer volumes there dipped 3.4 percent due to poor weather and higher fuel prices.
Other food and drink companies have pushed through price increases to offset big hikes in commodity costs, but analysts doubt if these big rises can continue while many world economies remain sluggish, particularly the U.S. and Europe.
AB InBev shares slipped 0.5 percent to 34.97 euros by 3:45 a.m. EDT with analysts concerned about prospects for recovery in the U.S. and Brazil as around three-quarter of the group's profits comes from the American region.
"The numbers did confirm that in the two key markets which are crucial to AB InBev, the USA and Brazil, there's no momentum in terms of volumes. Expectations were relatively low and they delivered on the bottom line, but again it's confirmation that the momentum is not there in the two crucial markets," said analyst Karel Zoete at Rabobank.
Second-quarter core profits or EBITDA (earnings before interest, tax, depreciation and amortization) increased by 6 percent to $3.75 billion, in line with forecast from a Reuters poll as the group raised prices to offset flat beer volumes.
In Brazil, beer volumes fell 2.6 percent due to low growth of disposable income, and because of tough comparisons with last year which was boosted by the football World Cup.
"We are confident the slowdown is temporary," AB InBev's Dutra told reporters. "We see a significant increase in real terms for minimum wages...this has an impact on disposable income and therefore consumption as we approach the year end."
Worries over rising unemployment and stagnant wages pushed U.S. consumer sentiment to a two-year low in July, while in Brazil consumer sentiment also reached a two-year low in June due to concerns over inflation.
Miller Coors, the second-largest brewer in the United States, owned by SABMiller Plc
AB InBev stuck to its forecast that costs savings from its takeover of Anheuser-Busch in 2008 would total $2.25 billion by the end of 2011.
12 Aug. 2011