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.
Anheuser-Busch InBev Ranks the Highest in Terms of Gross Margin in the Brewers Industry
Anheuser-Busch InBev (NYSE:BUD) is highest with a gross margin of 57.9%. Anheuser-Busch InBev NV brews beer. The Company manufactures ale, lager, stout, and bitter beer. Anheuser-Busch InBev owns brands that are both nationally and internationally prominent. The Company has production plants in Europe, the Americas, and Asia.
Anheuser-Busch InBev (NYSE:BUD) has potential upside of 24.1% based on a current price of $51.76 and analysts' consensus price target of $64.21. The stock should find initial resistance at its 50-day moving average (MA) of $53.37 and further resistance at its 200-day MA of $56.69.
Following is Boston Beer (NYSE:SAM) with a gross margin of 56.8%. Yesterday, Boston Beer traded 195,000 shares vs. average volume of 156,000 shares per day. The stock outperformed the Dow (0.8% to the Dow's -0.2%) and outperformed the S&P 500 (0.8% to the S&P's -0.8%) during yesterday's trading.
Finishing up the top three is Molson Coors Brewing (NYSE:TAP), with a gross margin of 43.9%.
Molson Coors Brewing share prices have moved between a 52-week high of $51.11 and a 52-week low of $37.99 and closed yesterday at 8% above that low price at $41.01 per share. Over the past week, the 200-day moving average (MA) has gone down 0.6% while the 50-day MA has declined 1.4%.
11 Oct. 2011