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.
San Miguel Says to Stay Listed After Ang Says Brewer May Be Taken Private
“San Miguel shall remain listed, owing to its iconic status in the country,” the Philippines’ largest listed company said today. The statement, citing Ang, was issued in response to queries, it said. San Miguel said it also “contemplates” to list all its operating subsidiaries, including new businesses.
Ang said in an interview yesterday that if he has his “way,” San Miguel will buy back its shares and become privately held by next year. Buying back the shares may cost about $800 million, he said. San Miguel had a public float of 14 percent as of May 5, it said at the time. That’s worth about 40 billion pesos ($943 million) based on today’s share price.
“A listed company has more advantages than a privately held corporation in terms of financing and attracting investors,” said Astro del Castillo, managing director at Manila-based First Grade Finance Inc.
The food and beverage company that’s expanding into oil refining, power retailing and infrastructure is also in talks to buy an overseas company with an enterprise value of $10 billion, Ang said yesterday. The target has a “potential free cash flow of between $2 billion and $3 billion a year,” he said. The discussions may take “a few more months,” Ang said.
Return on Equity
Compliance with the Philippine Stock Exchange’s requirements on disclosures has sometimes made it difficult for San Miguel to make purchases, Ang said yesterday. The Philippines’ most acquisitive company, which started as a brewer more than a century ago, seeks to triple the 7 percent return on equity it gets from its traditional food and drinks businesses.
San Miguel rose 1 percent to 122 pesos at the close of trading in Manila, paring gains after rising as much as 2.7 percent earlier. The stock has lost 26 percent this year, compared with a 3.7 percent gain for the Philippine Stock Exchange Index.
“If your balance sheet is strong like San Miguel, you don’t need to be publicly listed,” Ang said yesterday at the company’s headquarters in Manila. “If I have my way, I will privatize it next year,” he said.
Listed companies are more prone to “leakage” of information, and disclosures sometimes work to the advantage of competitors, Ang said in the interview.
San Miguel had 127 billion pesos in cash and near-cash items as of June and has a total of 186 billion pesos of bonds and loans due by 2019, according to data compiled by Bloomberg.
The company’s units such as Petron Corp. (PCOR), the country’s biggest refiner, and San Miguel Brewery Inc. (SMB) will probably remain listed, Ang said yesterday.
Ang declined to provide more details on the acquisition target such as which industry it operates in or where it’s based.
9 Sep. 2011