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.
Huge demand for EABL’s stake in Tanzania Breweries
* Foreign investors show strong appetite for shares
* Locals buy more than half of shares on offer
East African Breweries said on Friday the sale of its 20 percent stake in SABMiller's Tanzanian unit was heavily oversubscribed, with foreign investors showing plenty of appetite.
Analysts said Tanzania Breweries Limited enjoyed a huge lead in a market seen as offering significant growth opportunities, hence the massive investor appetite for the shares of a firm that has a record of making good profits.
EABL, which is controlled by Britain's Diageo, was selling 59 million shares in Tanzania Breweries, after it purchased a stake in rival Serengeti Breweries in order to go it alone in east Africa's second largest economy.
"Applications were received ... for a total of 144,462,780 shares, representing approximately 245 per cent of the number of offer shares available," EABL said in a statement.
Foreign investors applied for a total of 111,852,540 shares, which were priced at 2,060 shillings ($1.30) per share, but were allocated 26,375,453 shares, or 44.72 percent of the shares on offer.
Local investors applied for 32,586,640 shares and were allocated all the shares, equivalent to 55.24 percent of the total shares on offer, with investors from other east African nations applying for and picking up 23,600 shares or just 0.04 percent of the stake on offer.
EABL raised 121.5 billion shillings in the share sale. A recent initial public offering in Precision Air attracted demand for less than half of the shares on offer as investors kept hold of their cash in order to buy into Tanzania Breweries.
Shares in TBL, which controls about 70 percent of the beer market in Tanzania, were sold at a 12.4 percent premium, according to brokers. Subscriptions to the placement of the shares in TBL ran from Nov. 4 to 25.
SABMiller owns 52.83 percent of TBL, while 6.04 percent of the shares in the company were listed on the Tanzanian bourse prior to the placement of the 20 percent stake.
Tanzanian pension funds own 8.83 percent of TBL, while other shareholders are Unit Trust of Tanzania (4.49 percent), the Tanzanian government (4 percent) and International Finance Corporation (3.81 percent). ($1 = 1590.0000 Tanzanian shillings)
10 Jan. 2012