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.
ABInbev may use AmBev shares to buy SABMiller
The market value of AmBev is currently around USD 83 billion, being about the market value of mother company AB InBev, which is traded on the Belgian stock exchange for about USD 85 billion. SABMiller is worth 33.4 billion pounds, or USD 51.4 billion. Ambev may also use USD 3.2 billion USD cash in the operation.
While AmBev’s shares trade at 18.6 times estimated profit for 2012, SABMiller shares equivalent to 13 times the expected result for the year. This would give an advantage to the Brazilian company in the negotiations.
One analyst believes, that the acquisition of SABMiller by ABInbev makes “perfect sense”, because the two breweries are complementary. There is only overlapping business in the U.S. and China. Antitrust authorities in these countries may impose restrictions, but that should not disable the operation as a whole .
This year, AmBev has become the darling of the market and is among the best performing roles in the Bovespa. Investors believe that the brewery is an active “defensive” in times of uncertainty. The price of beer keeps pace with inflation, even with a slowing economy, people do not stop consuming it.
This strong demand for shares of AmBev, however, created distortions in the market, which explains the fact that the brazilian brewery is worth as much as its Belgian parent company.
12 Oct. 2011