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.
SABMiller announces US$260 million investment in Africa to fund capacity increases
SABMiller Africa's impressive growth trajectory continued in the first half of the year to 30 September 2011, with volumes up 15 per cent. SABMiller's growth in the region has been driven by continued investment in diverse product portfolios, enhanced distribution and consumer occasion activations. Beer has grown category share from a low base of per capita consumption, supported by a buoyant economic environment.
SABMiller Africa has seen growth of 34% in Castle premium beers (Castle Lager, Castle Lite and Castle Milk Stout). At the other end of the price spectrum, the company has introduced and expanded the reach of a range of affordable traditional and locally-sourced beers including Eagle sorghum beer, Chibuku opaque beer and Impala cassava beer.
This combination of strong underlying economic fundamentals and a full range of products at all price points has driven increased consumer demand for beer, particularly in Uganda, Zambia, Ghana and Tanzania.
Nile Breweries Ltd, Uganda (NBL)
In the six months to 30 September 2011, volumes grew by 23% in the Ugandan business. The second quarter saw double digit growth in economy, mainstream, and worthmore segments, despite capacity restraints. SABMiller's African division plans a US$70m investment in the business, and is currently considering the most effective way to increase capacity.
Accra Brewery Ltd, Ghana (ABL)
Lager volumes grow by 54% in the first half of the financial year. ABL's Club Premium Lager led this strong performance, with volumes growing by more than 80% in the second quarter alone in the fastest growing market in the region. ABL will receive approximately US$40m to support further capacity expansion in a fast growing market.
Zambian Breweries Ltd, Zambia (ZBL)
In Zambia, lager volumes grew 22% on the prior year as a result of increasing demand for the Castle and Mosi Gold lager brands. This growth has seen ZBL approaching its current capacity limits in a buoyant economy. To remedy this, US$70m will be invested in the business to support further capacity upgrades in the coming years, including the expansion of the Ndola brewery.
Tanzania Breweries Ltd (TBL)
Tanzania gained market share and delivered robust volume growth of 20% in the first half of the year, due in part to increased refrigeration at point of sale, a more focused distribution model and a favourable economy. Key brands, including Safari, Kilimanjaro, Castle Lager, Castle Lite and Grand Malt are all in growth and trending upward. Approximately US$80m will be invested in capacity expansions at TBL's breweries in Arusha, Mwanza and Mbeya.
Mark Bowman, managing director of SABMiller Africa, comments: "The positive economic backdrop in Africa, very favourable demographics and current low levels of consumption underpin our confidence in making additional investment to meet the strong demand for our products in the region.
"This investment is in addition to the US$1.5bn that we have already invested in Africa in the past five years and our continued development of affordable products such as a cassava-based beer will allow us to continue to drive growth in the business and in the communities in which we operate."
17 Nov. 2011