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.
India. United Breweries to set up two greenfield breweries
UB has acquired the land in Mysore and is in the process of doing so in Patna, and the breweries will be ready for operation in 2012-13, he said. The new breweries, each with an initial capacity of 0.8-1 million cases per month, will produce all of UB's brands including Heineken, their latest addition, which is now being brewed only in their brewery near Mumbai. After the expansion, the total capacity of the breweries will go up to about 16 million cases a month from 12.6 million cases a month capacity now.
UB, which holds over 50 per cent of the market share today, sees the demand for their beer growing in line with the company's double digit growth, Mr Vaz said.
UB is also in the process of amalgamation of UB Nizam Breweries and Chennai Breweries; and also UB Ajanta Breweries, Millennium Beer Industries and United Millennium Breweries. The merger of the above units is expected to be complete in the next 12 months, industry sources say.
IDFC in a recent report has said UBL continues to grow ahead of industry and hence has increased its market share to 53 per cent. However, there are challenges in the form of taxation increases by certain State Governments, change in Andhra Pradesh procurement policy, and also the relatively tougher environment will restrict volume growth to 15 per cent compared with 30 per cent in FY11.
“Our sense is that risks for UBL would increase from hereon, and any potential weakness in the business over the next few quarters could lead to a sharper de-rating,” IDFC said in its report.
12 Sep. 2011