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.
Asahi closing in on 1 billion pounds StarBev deal – sources
The two were hammering out the final details of a deal which could be announced as early as next week after Asahi was left as the only bidder, but the people said that the deadline was flexible and matters could still change.
"Asahi and CVC are putting the finishing touches to a deal," said one source with knowledge of the deal on Friday.
Another source said the two were looking to agree "just bits and pieces of detail" and once these were agreed then the process can move quickly towards signing an agreement.
Earlier this month, Reuters reported that Asahi was seen as a frontrunner in the auction to buy StarBev.
CVC, which bought StarBev in December 2009, put the business up for sale after approaches from a number of brewers thought to include Asahi, Carlsberg (CARLb.CO), SABMiller (SAB.L) and Heineken (HEIN.AS).
The private equity firm had bought the business from the world's biggest brewer Anheuser-Busch InBev (ABI.BR), calling it StarBev after its Czech beer Staropramen, and although AB InBev has the "right of first offer", at least two sources with knowledge of the deal said that AB InBev is not going to buy back the assets.
The business has operations in nine eastern European nations including the Czech Republic, Romania, Bulgaria and Hungary, and although it has been hit by recent weakness in eastern European economies, it is still seen as a long-term growth story in a rapidly consolidating brewing world.
All parties involved either declined to comment or could not be immediately be reached for comment.
Big European brewers SABMiller, Heineken and Carlsberg had looked closely at the StarBev business but had concluded that anti-trust hurdles would be too difficult to overcome as all three have sizeable interests in eastern Europe.
AB InBev sold the business to cut debt after buying Anheuser Busch for $52 billion in cash in 2008 and is seen unlikely to buy back its relatively small positions in a range of markets while its eye is on the sizeable shares it has in key markets such as the U.S., Brazil, Russia and China.
The Belgium-based brewer could still earn a return if the business is sold to Asahi as when CVC bought StarBev for around $2.2 billion it agreed with AB InBev potential future payments of as much as $800 million based on CVC's return on its investment.
The brewer of Japan's top-selling beer "Super Dry" has been expanding abroad and last year Asahi president Naoki Izumiya signalled more overseas deals were likely as it aims for over 20 percent of its sales from foreign markets by 2015.
In Europe, the four big brewing stocks were all higher at 01:20 p.m. British time with AB InBev gaining 0.9 percent to 54.30 euros, SABMiller up 0.2 percent at 2,527 pence, Heineken up 0.7 percent to 41.75 euros and Carlsberg 3.3 percent higher at 460.90 crowns.
3 Apr. 2012