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.
AB-InBev on Shortlist for China Brewery Deal
The deal value could be as high as $700 million and the short-listed bidders are expected to conduct due-diligence over the next two months, one of the sources said.
China Resources Enterprise Ltd, which owns Snow beer brand, and Beijing Yanjing Brewery Co Ltd are among the other companies that have advanced to the next round, the sources said.
Foreign and Chinese brewers are jostling to grow their market share in China, the world's biggest beer market, and Kingway's planned sale is one of the few sizeable brewery assets that has come up for sale in recent times.
The eventual winner can benefit from strong growth in China's beer consumption. China's beer demand hit 450 million hectoliters in 2010, nearly twice that of the United States, and is expected to grow 5% per year in coming years, double the 2.5% growth forecast for the global market for 2011.
Kingway, with a market value of about $655 million, has said it does not plan to sell an equity stake in the company. The stock was trading up 2.0% on Friday afternoon, outperforming the 1% gain of the broader market .HSI.
The stock is up about 38% so far this year on expectations of strong bidding.
Kingway Brewery has invited bids for equity stakes in six breweries, all beer and beer-related trade marks, domestic and overseas distribution networks, the sources said. The company plans to retain two of its production facilities, one of the sources said.
Anheuser-Busch and China Resources declined comment, while Kingway and Yanjing officials were not immediately available for comment. The sources declined to be identified as the discussions were private.
AB-InBev was the third-biggest brewer in China with a market share of 11.4% in volume terms as of 2010, according to data compiler Euromonitor. Its main breweries are in Fujian Sedrin in southeast China, and Harbin in the northeast.
China's largest brewer China Resources Snow is a joint venture between China Resources and SABMiller Plc.
SABMiller has said that any deal in China would be through its CR Snow joint venture, in which it own 49 pct with the rest owned by China Resources Enterprise.
AB-Inbev has always stressed it looks to control its own operations in China and analysts say a deal with Kingway would complement its footprint in China.
In April last year, GDH Ltd, a unit of state-backed Guangdong Holdings Ltd, had exercised the right to buy the 21.37% stake in Kingway held by a Heineken NV joint venture in China, blocking a bid from China Resources.
GDH paid 1.08 billion yuan ($164.94 million) for the stake, increasing its holding to 73.82%.
Kingway was previously jointly controlled by Asia Pacific Breweries Ltd, a unit of Singapore food and property conglomerate Fraser and Neave Ltd, and the world's third-largest brewer Heineken.
Read more: http://www.foxbusiness.com/industries/2012/03/02/ab-inbev-on-shortlist-for-china-brewery-deal/?#ixzz1oSMMxSHz
7 Mar. 2012