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 cuts 2011 outlook on weak Russia
The world's fourth-largest brewer said it now saw full-year adjusted net profit growth of 5-10 percent, against previous guidance for more than 20 percent growth.
It also cut its outlook for 2011 beer volume growth in Russia, which accounts for about 40 percent of Carlsberg's total beer sales.
"Second-quarter performance in Russia has been below expectations," said Chief Executive Jorgen Rasmussen in the statement.
"The recovery in the beer category is taking longer than we anticipated as the Russian consumer adapts to the exceptional price increases of around 30 percent undertaken during the last 18 months," Rasmussen said.
"This impacts negatively our Russian 2011 profits and is the driver behind our revised 2011 outlook," Rasmussen said.
Carlsberg said it sees Russian beer volume growth at a low single-digit percentage figure from a previous forecast of between 2 and 4 percent this year. The Russian market declined by about 2 percent in the second quarter, it said.
Unfavorable weather during the second quarter also hit beer consumption, the brewer said.
"I would not have thought that Carlsberg would have to downgrade its outlook due to this," Nymann said, adding he had expected it would have been easier to get price increases through in Eastern Europe.
"I'm confident that our Russian business will return to growth," Rasmussen said. "At the same time, I'm pleased with the performance of the rest of the Group."
EUROPE, ASIA GROWTH
Beer markets in Northern and Western Europe grew slightly for the first six months. In Asia most beer markets reflected growth of mid- to high single-digit percentages.
For the Copenhagen-based brewer of Tuborg, Baltika and Carlsberg beers, northern and western Europe account for about 40 percent of total beer sales and Asia about 20 percent.
"It looks good for the business in northern and western Europe, and in Asia which is seeing strong growth in China," Imsgard said.
Second-quarter operating profit fell to 3.70 billion Danish crowns ($715 million) from 4.24 billion in the same quarter last year, missing analysts' average estimate of 4.34 billion forecast in a Reuters poll.
Sales rose 4.3 percent to 18.74 billion, in line with a 18.73 billion average forecast.
18 Aug. 2011