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.
Organisational changes in SABMiller’s African operations
The changes involve the combination of the operational management of the Castel and SABMiller businesses in Nigeria and Angola, with the Nigerian businesses being managed in future by SABMiller, and the Angolan businesses being managed by Castel. Amendments have also been agreed to the terms of the strategic alliance agreement to provide for improved sharing of best practice and technical expertise, and a more precise methodology for the existing mutual pre-emptive rights over the groups' respective beverage operations in Africa (excluding South Africa and Namibia).
The existing strategic alliance agreement, pursuant to which SABMiller has a 20% shareholding in Castel's other African beverage interests and Castel has a 38% shareholding in SABMiller's principal African holding company, is otherwise unchanged.
Commenting on the changes, Graham Mackay, Chief Executive of SABMiller said:
"Our relationship with the Castel Group has gone from strength to strength over the decade that the strategic alliance has been in place. We believe that these operational changes will benefit our local businesses, our minority partners, and our customers and consumers in both Angola and Nigeria, and demonstrate both groups' long-term commitment to the alliance."
Pierre Castel, Executive Chairman of the Castel Group, said:
"After ten years of alliance, it was deemed appropriate to review and upgrade our partnership with a stronger focus on synergies."
About SABMiller plc
SABMiller is one of the world's largest brewers with brewing interests and distribution agreements across six continents. The group's wide portfolio of brands includes global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft, and Grolsch, as well as leading local brands such as Aguila, Castle, Miller Lite, Snow, Tyskie and Victoria Bitter. SABMiller is also one of the world's largest bottlers of Coca-Cola products.
In the year ended 31 March 2011, the group reported US$4,491 million adjusted pre-tax profit and group revenue of US$28,311 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.
About SABMiller's African operations and the Castel Group
SABMiller and Castel are two of the leading brewers in Africa with strong and complementary market positions on the continent.
SABMiller operates in 15 countries in Africa: Botswana, Comores, Ethiopia, Ghana, Kenya, Lesotho, Malawi, Mayotte, Mozambique, Nigeria, South Sudan, Swaziland, Tanzania, Uganda and Zambia.
The Castel Group has beer, carbonated soft drink and mineral water interests, primarily in west and central Africa, and the Indian Ocean. Its operations cover Algeria, Angola, Benin, Burkina Faso, Cameroon, Central African Republic, Chad, C?te d'Ivoire, Democratic Republic of Congo, Equatorial Guinea, Ethiopia, Gabon, Gambia, Guinea, Madagascar, Mali, Mauritius, Morocco, Niger, Senegal, Togo and Tunisia.
Values of the gross assets involved
As at 31 December 2010 the value of the gross assets of Castel's Nigerian businesses was US$75 million respectively. As at 30 September 2011 the value of the gross assets of SABMiller's Angolan businesses was US$918 million.
As a result of the changes, the groups will share at the strategic alliance level, the aggregate profits and cash flows of their operations in Nigeria and Angola based primarily on the relative contributions of their businesses in each country. In Nigeria the businesses are of approximately equal size. In Angola, the Castel business is approximately three times as large as SABMiller's operations. Accordingly, the transaction is expected to have an immaterial impact on SABMiller pro forma earnings per share.
10 Jan. 2012