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.
EABL gets nod to sell stake in SABMiller’s unit
* Move will seal formal exit from TBL
* Placement set at $1.212 per share
Tanzania's stock market regulator has approved the sale of East African Breweries Ltd's 20 percent stake in SABMiller's Tanzanian unit for 121.5 billion shillings ($71.5 million), brokers said on Tuesday.
Subscriptions to the placement of 58,985,693 shares in Tanzania Breweries Limited run from Oct. 24 to Nov. 11, said Orbit Securities, sponsoring broker for the share sale.
"The Capital Markets and Securities Authority (CMSA) approved the prospectus yesterday and the share sale will start on Monday next week," Orbit Chief Executive Laurean Malauri told Reuters.
"EABL is selling its 20 percent stake in TBL for 121.5 billion shillings ... this is a placement of shares, a few shares of TBL are already listed on the Dar es Salaam Stock Exchange (DSE)."
Controlled by Britain's Diageo , EABL has set a price of 2,060 shillings per share, in what is expected to become the biggest share sale in the tiny Tanzanian bourse's history.
EABL ended a manufacturing and distribution agreement with TBL last year to buy a bigger stake in Tanzanian-based Serengeti Breweries instead and thereby boost its presence in East Africa's second-largest economy.
Serengeti, the second-biggest beer maker in Tanzania after TBL, is owned by a group of private investors.
"EABL is not raising capital or anything in the sale of the shares, it is simply exiting from TBL," said Malauri.
SABMiller and EABL have been in fierce competition for the lucrative Tanzanian beer market where sustained economic and population growth are driving the country's thirst for the alcoholic beverage.
Brokers said TBL's shares recorded a sharp price rise last week from 1,920 shillings to 2,040 shillings, as investors eye the placement of the additional shares.
"TBL's share price increase may have been driven by investors who want to take advantage of the coming mini IPO whereby the shares will be sold at a premium of up to 15 percent of the market price," Tanzania Securities Limited (TSL), a securities brokerage and investment advisory company, said in a weekly commentary sent to Reuters.
Another major player in the DSE, Tanzania's Precision Air, launched its IPO this month in a bid to raise around $17 million for fleet and route expansion.
19 Oct. 2011