10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
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.
Asahi Said to Be Near Agreement to Buy Independent Liquor for $1.2 Billion
A deal may be announced as early as Aug. 18, said the people, who asked not to be identified because the discussions are private. Takayuki Tanaka, a spokesman for Asahi in Tokyo, declined to comment. A transaction of that size would be Asahi’s biggest, according to data compiled by Bloomberg.
Japanese beverage makers including Asahi and Kirin Holdings Co., the country’s biggest by market value, are expanding abroad as a declining and aging population hurts domestic demand for beer and soft drinks. A strengthening yen, which hit a postwar record of 76.25 to the dollar in March, boosts Japanese companies’ buying power abroad.
“Japan’s market is mature, so it is inevitable for Japanese brewery companies to seek M&A chances overseas,” Mitsushige Akino, who oversees about $600 million in Tokyo Ichiyoshi Investment Management Co., said by telephone.
Asahi submitted a bid for Independent Liquor on Aug. 4, a person familiar with the matter said the following day. Independent Liquor, owned by Unitas Capital Pte. and Sydney- based Pacific Equity Partners, distributes brands including Woodstock bourbon, Whyte & Mackay scotch, Carlsberg and Tuborg beers as well as pre-mixed drinks in New Zealand and Australia.
Amanda Lee, a spokeswoman at Financial Dynamics, Pacific Equity Partners’ external media adviser, declined to comment on a possible sale of Independent Liquor.
Asahi declined 0.1 percent to close at 1,588 yen in Tokyo trading. The stock has gained 1 percent this year, compared with a 13 percent slide in the broader Topix index.
The brewer’s biggest acquisition has been its purchase of Cadbury Plc’s Schweppes Beverages business in Australia for 550 million pounds, or about $808 million at the time, which was completed in April 2009.
Asahi has lagged behind Kirin, Japan’s biggest beverage maker by market value, in expanding overseas. Asahi has spent more than $2 billion abroad in the past five years, compared with Kirin’s more than $12 billion, according to data compiled by Bloomberg.
Kirin on Aug. 2 paid 3.95 billion reais ($2.5 billion) to gain a stake in Schincariol Participacoes e Representacoes SA, Brazil’s second-largest beermaker.
Asahi last month agreed to buy the water and juice businesses of P&N Beverages Australia Pty Ltd. and New Zealand drink maker Charlie’s Group Ltd. (CHA) for $309 million to expand overseas as sales growth declines at home.
“Developing markets like Brazil or India are still volatile, so I think it is safer and easier for Asahi to focus on Oceania,” Akino of Ichiyoshi Investment said.
Kirin made more than 23 percent of its 1.7 trillion yen in 2010 sales abroad, while Asahi generated 6.6 percent of its 1.5 trillion sales in the same period overseas, according to data compiled by Bloomberg.
The yen traded at 76.87 as of 5:01 p.m. in Tokyo. The Japanese currency may rise past the record it reached in March, spurred by investor flight to haven assets, Eisuke Sakakibara, formerly Japan’s top currency official, said yesterday.
Group of Seven nations jointly sold the yen on March 18, the day after it reached an all-time high amid speculation Japanese companies would repatriate funds to cope with a record earthquake days earlier. Japan unilaterally sold its currency on Sept. 15 in its first intervention since 2004.
17 Aug. 2011