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.
Foster’s loses ground to rivals in packaged beer segment
As Foster's robustly defended its reporting practices before the Takeovers Panel yesterday, figures from market researcher Neilsen showed that CUB's share of the local packaged beer market declined over the three months to the end of July.
The brewer had 47.8 per cent of packaged beer sales by volume for the quarter, compared with 49.9 per cent for the same period a year earlier.
The decline was compounded by the fact that overall beer market volume fell by 6.8 per cent in the 12 months to the end of July, with the biggest declines in Carlton United Brewers' VB, Pure Blonde and Carlton Cold brands.
At the same time, rival brewer Lion increased its market share from 41.9 per cent to 43.1 per cent.
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Packaged beer accounts for about 70 per cent of the market, so SABMiller is likely to seize on the latest Neilsen data to strengthen the case for its bid.
Foster's, for its part, said at its annual result last month that its "total" market share had stabilised in the 2010-11 financial year, correcting long-term trends.
However, this included the draught as well as the packaged beer market.
In a Citi report last month, before the annual result, analyst Andy Bowley said CUB's market share had "dropped dramatically" in recent months.
Mr Bowley said the brewer's share, having progressed on a flat to slightly positive trajectory for 12 months until February, had since gone into steep decline.
"In part, the decline in share reflects a more positive company pricing approach since late 2010," he said.
"However, it also reflects more aggressive competitor pricing."
Foster's has emphatically rejected SABMiller's $4.90-a-share pitch, lodged last month.
While the board said the offer significantly undervalued the company, the brewer's share price remains below the offer, easing 1c yesterday to $4.85.
Meanwhile, the Takeovers Panel yesterday considered SABMiller's complaint that there was no reasonable basis for several forward-looking statements by Foster's in presentations to investors.
The bidder asked the panel to consider whether Foster's claims about growth prospects for earnings before interest and tax were misleading and deceptive in the context of a takeover bid.
It also questioned the group's reported net debt figure of $887 million, asking whether it conformed with Australian accounting standards.
The panel normally considers written submissions from both parties on such matters, with each side responding to the claims of the other.
If the matter is not dismissed in the early stages, the hearing normally proceeds for about a week.
The outcome of the panel's deliberations is subject to final approval by the corporate watchdog, the Australian Securities & Investments Commission.
5 Sep. 2011