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.
Nigerian Breweries Buys Sona and Life to Expand Capacity
With the takeover, the Heineken NV (HEIA) unit takes control of Sona’s two brewing plants in the southwestern town of Ota and the northern city of Kaduna, as well as a third formerly run by Life Breweries in the southeastern city of Onitsha, the Lagos- based company said in a statement published today by the Nigerian Stock Exchange. Nigerian Breweries didn’t say how much it paid.
The acquisitions give Nigerian Breweries “immediate access to additional capacity and also brand extension,” Tunde Abidoye, an analyst with FBN Capital Ltd. said today by phone from Lagos. They will add about 3.7 million hectoliters to the company’s production and broaden its product range, he said.
Nigeria, with more than 150 million people, is the continent’s most populous country and is attracting investment from global beermakers seeking to expand market share. SABMiller Plc (SAB), the world’s second-largest brewer by volume, said on Feb. 25 that it plans a $100 million plant in Onitsha within two years. Guinness Nigeria Plc, a beer-making unit of distiller Diageo Plc (DGE), said on March 11 that it will spend $336 million to expand brewing capacity in the country.
Nigerian Breweries rose 5 percent, the maximum daily limit, to 79.78 naira by the 2:30 p.m. close in Lagos. The stock has risen 2.9 percent this year, compared with a 18 percent decline in the Nigerian Stock Exchange All-Share Index over the same period.
3 Oct. 2011