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.
Heineken to invest 400 mln euros in Congo over 5yrs
* Sees strong growth potential in Congo beer market (Adds quotes, details)
Heineken (HEIN.AS) plans to invest 400 million euros ($561 mln) in its Bralima breweries in Democratic Republic of Congo over the next five years, to tap into the country's rapidly growing population, Bralima said on Wednesday.
Hans van Mameren, Bralima's managing director, said the outlook was positive despite uncertainity hanging over elections, as economic growth looked robust and any boost to infrastructure would see new markets open rapidly.
Bralima, which has been majority-owned by Heineken since 1986, has been operating in Congo since 1923 and makes the country's most popular beer, Primus.
Mameren said 250 million euros would be spent on renovating the original brewery in Kinshasa and building a new one 40 km (35 miles) away. Another 150 million euros will be used to buy equipment and improve other breweries across the country.
Congo is due to hold its second post-war election on Nov. 28 and the capital has already seen several violent protests.
Yet despite the political uncertainty and increased tensions, Mameren believes the country's economy will continue to grow, as will people's thirst for beer. "Even if they fight a war in parts of Congo, the economy keeps going," he said.
Congo's annual per capita consumption of beer is just 3 litres, as opposed to 20 litres in Nigeria and 30 litres in neighbouring Congo Brazzaville, according to Mameren.
Mameren said expansion is inevitable with population growth at around 3 percent and roughly one third of the country's 67 million people still unreachable by road.
"Everyone can see if you put a minimum of infrastructure in this country, it immediately opens up markets, it's all about access," Mameren said, pointing at vast roadless areas on a map.
When the road between Kisangani, in the centre of the country, and Beni, in the far east opened two years ago, Bralima's Kisangani brewery raised its output by more than 500 percent, he added.
Congo's vast infrastructure gap is far off being bridged but some roads are slowly being built on the back of foreign aid and a $6 billion minerals-for-infrastructure deal with China.
But transport remains the biggest challenge, with beer often travelling hundreds of kilometres by road or river to reach its destination, pushing up the price, according to Mameren.
"If you sell it around the chimney it's fine, but if you have to transport it... it's ludicrously expensive," he stated.
Although Congo's business climate remains one of the most hostile in the world and tax is as high as 40 percent, Mameren believes the nature of their product protects them from the worst excesses of corruption and government hassle.
"We're producing the cheapest luxury in this country; if there was a situation where there was no beer, the population would be very surprised to say the least," he said. ($1 = 0.712 Euros)
7 Sep. 2011