10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
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.
Kirin Said to Offer at Least 2 Billion Reais for Schincariol Minor Stake
The plan is to offer minority shareholders a per-share price that’s close to what Kirin agreed to pay majority holders Adriano and Alexandre Schincariol, the sons of the founder, said the person, who declined to be identified as talks are private. Kirin agreed last month to pay 3.95 billion reais for Aleadri- Schinni Participacoes e Representacoes SA, which owns 50.45 percent of the brewer.
An agreement may help resolve the court dispute holding up the deal, which would give Kirin a foothold in Latin America’s largest beer market with brands such as Nova Schin and Devassa. Jose Augusto Schincariol, Daniela Schincariol and Gilberto Schincariol Junior, who own the rest of the Brazilian beer maker, had sued to block Kirin’s purchase, saying they have the right of first refusal on Aleadri-Schinni’s holdings.
Kirin, based in Tokyo, is assuming half Schincariol’s 1.1 billion reais in debt as part of the transaction. The brewer is still negotiating with minority and majority shareholders over who will assume Schincariol’s labor, legal and tax liabilities, which stood at 2.1 billion reais at the end of 2010.
Kirin hired UBS AG for the deal with the minority shareholders, two people familiar with the process said. Citigroup Inc. advised Kirin for the controlling stake.
Brazil’s Supreme Court of Justice is scheduled to deliver a decision on the matter Oct. 11.
Kan Yamamoto, a spokesman for Kirin, declined to comment. Teixeira Martins, a law firm that represents Schincariol minority shareholders, declined to comment. Mattos Filho Veiga Filho Marrey Junior e Quiroga Advogados, a law firm that represents Schincariol’s majority shareholders, declined to comment. UBS and Citigroup declined to comment.
Kirin, Japan’s second-largest brewer by volume, has made or proposed at least five acquisitions in 2011. The Schincariol purchase is the second-largest in the beer industry this year, trailing only SabMiller Plc’s A$9.9 billion ($9.64 billion) offer for Foster’s Group Ltd.
3 Oct. 2011