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.
Kirin Confirms Tender of Fraser & Neave Stake
--Kirin then aims to buy back F&N's food and beverage ops for S$2.7B
--Kirin shares fall in Friday trading on fears about additional M&A costs
TOKYO--Kirin Holdings Co. (>> Kirin Holdings Company, Limited.) confirmed Friday that it has decided to tender its entire 15% stake in Fraser & Neave Ltd. (F99.SG) to an offer by Overseas Union Enterprise Ltd. (LJ3.SG), which aims to take control of the Singaporean conglomerate.
The Japanese brewer and soft drink maker has decided to tender its stake for 1.9 billion Singapore dollars ($1.6 billion). Kirin then aims to buy back F&N's food and beverage operations for about S$2.7 billion.
It remains to be seen if the plan will be successful, given a pending offer by a Thai billionaire. But investors reacted cooly toward Kirin's additional spending plans for the deal.
Kirin shares were down 2.4% at Y967 midday on the Tokyo Stock Exchange, after falling 4.7% to as low as Y944.
On Thursday, OUE, a unit of Indonesia's Riady family, said it plans to buy shares in F&N for S$9.08 each, trumping a S$8.88 per share offer worth US$7.2 billion by Thai billionaire Charoen Sirivadhanabhakdi.
Kirin said Friday the company "has agreed to accept the offer in respect of its shares in F&N, subject to certain conditions set out in OUE's announcement."
The move is in line with Kirin's main interest in food and beverage operations in Asia.
"We invested in Fraser & Neave because of our main interest in its food and beverage operations," Kirin President Senji Miyake has repeatedly said.
Kirin bought its 15% stake in F&N for about $970 million in 2010 as part of efforts to become a leading food and beverage company in Asia and Oceania. But questions on whether Kirin had any aspirations toward F&N had gone unanswered since earlier this year.
18 Nov. 2012