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.
SABMiller’s Fosters bid loan totals $12.5 billion
The dollar-denominated loan is priced at around 90 basis points (bps) over LIBOR, the sources said, well under European banks' dollar funding rates which spiked this week.
The loan includes an 18-month bridge loan to bond issues of around $8.5 billion and also includes three and five-year term and revolving facilities, one of the bankers said.
SABMiller is arranging the loan itself and has asked banks to commit $1.6 billion each.
SABMiller is pushing to close its jumbo loan as Europe's dollar funding crisis deepens.
SABMiller is expected to raise the full amount of the loan from banks with easy access to dollar funding -- either U.S. banks with dollar retail deposits or Japanese banks with lower funding costs.
The decision to join the loan is a painful one for many of Europe's top arranging banks, which are paying nearly twice as much for dollars as the loan's interest margin.
The marginal cost of dollar funding is more than 200 bps, using Credit Default Swaps as a proxy, a senior loan banker said.
"Dollar funding costs are worse now than when this loan was discussed. In the last 10 days, everyone has seen the cost of funding dollars on a marginal basis ramp up," he added.
While banks will net significant ancillary business from the company's planned bond issues, European banks will lose money on the loan component.
"Banks will have to swallow the implied cost of funds to get the ancillary business," the senior loan banker said.
The loan may be syndicated further at a later stage to reduce banks' exposure and risk.
The loan's pricing varies across the different maturities of the tranches. Pricing on the bridge loan steps up over time to encourage an early refinancing in the bond market.
The $12.5 billion loan is expected to be signed on Friday, the sources said.
19 Aug. 2011