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.
Isaac Sheps to become CEO of Baltika Breweries and SVP of Eastern European region
Sheps will also be responsible for Carlsberg's operations across Eastern Europe. Sheps will start on 1 December and will replace Anton Artemiev, the current CEO of Baltika and SVP Eastern Europe, who continues as a member of the Baltika Supervisory Board.
Commenting on this announcement, Jorgen Buhl Rasmussen, CEO Carlsberg Group, said: "Anton Artemiev and his management team have developed Baltika into a clear market leader within the industry and, despite challenging market conditions, Baltika is in a good position to profit from the exciting growth opportunities that Russia has to offer.
Isaac Sheeps has a great track record at Carlsberg, both in South East Europe and the UK, and I am confident that his strong leadership skills; operational focus; and his diverse, international experience will serve us well at Baltika and across the Eastern European region."
Sheps joined Carlsberg UK in October 2008 and has been successful in turning the UK business around to a point where it is has tripled its profits while growing market share from 13% to more than 15%, at a time when the UK beer market has been in decline. In 2010, the Carlsberg brand family became the largest off-trade beer brand in the UK. During his previous three years as CEO of Carlsberg in South East Europe, the business managed to premiumise mainstream brands, grow volumes by over 40%, increase average net sales/HL by over 30%, resulting in a five-fold increase in earnings.
Isaac Sheps added: "This is an exciting prospect and I look forward to ensuring that Baltika continues to deliver a very positive contribution to the Carlsberg Group."
An announcement regarding the appointment of a new CEO for Carlsberg UK will be made as soon as possible. Jesper Friis, Senior Vice President, Western Europe, will act as the interim CEO.
31 Oct. 2011