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 Affirms Rejection of SABMiller’s $9.6 Billion Bid as ‘Inadequate’
Investors should reject the “inadequate” offer and are advised not to take action when SABMiller files its formal bidder’s statement, Melbourne-based Foster’s said in a letter to investors filed with the Australian stock exchange today. The offer is now worth A$4.7675 a share after adjusting for the 13.25 Australian cent dividend to be paid by Foster’s, it said.
Foster’s has opposed the offer since first disclosing an approach on June 21, instead committing to Chief Executive Officer John Pollaers’ plan to return at least A$500 million to investors and cut production costs to revive earnings. London- based SABMiller, the maker of Peroni and Grolsch, announced plans to take its offer directly to shareholders on Aug. 17.
“Your board will always act in the best interests of shareholders and will therefore give due consideration to any bona fide offers it receives,” Chairman David Crawford said in the letter. “There is significant future value available to you, as a shareholder, if Foster’s remains an independent company.”
The offer by the world’s second-largest brewer by volume was originally worth A$4.90 a share, or A$9.5 billion, prior to any dividend payments.
Foster’s shares fell 1.6 percent to A$4.83 at the 4:10 p.m. close of trading in Sydney.
SABMiller failed on Sept. 8 to get Australia’s Takeovers Panel to intervene in the bid after the body rejected its application to review statements from Foster’s about earnings forecasts and debt levels.
Foster’s has forecast revenue in the 12 months ending June 2012 will rise at a “mid single-digit” pace with earnings before interest and tax increasing faster.
Were the offer to succeed, SABMiller would gain just under half of the Australian beer market, including brews such as the namesake lager, Pure Blonde and Fat Yak.
Foster’s has said it’s open to talks on a “sensible” bid from SABMiller, without being more specific.
12 Sep. 2011