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.
Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
SABMiller finds full-strength returns elusive in Foster’s declining market
The beer declines at Foster's outpaced the drop in consumption experienced by the broader brewing market.
Reporting its results overnight for the six months to September, SABMiller confirmed a trading update announced earlier in the year that its Foster's business had lost significant volumes for the half.
SABMiller, which paid $12.3 billion last year for the acquisition of Foster's, said lager volumes had declined by 8 per cent on a pro forma basis during the half, excluding the impact of the termination of some licensed brands and the loss of two trading days.
''Including these impacts, lager volumes declined by 13 per cent,'' the company said.
Since the takeover by SABMiller in 2011, Foster's has lost a string of licences as global owners of popular beer brands switch their contracts to other players who are not in direct competition with them in other international markets.
The termination of deals with Corona, Australia's biggest selling imported premium beer, and others such as Stella Artois have also enabled its arch rival in the region, Lion, to usurp its position as Australia's No.1 brewer.
SABMiller, the world's second-biggest brewer, said its share of the Australian market might not lift for another two years.
Reporting to shareholders, SABMiller said Foster's had made improvements to the business. ''Good progress continues to be made on plans to strengthen the brand portfolio and commercial trading relationships, to accelerate the realisation of synergies and to improve operational performance.''
The acquisition of Foster's and higher profits in China and India did result in higher group earnings, however, with reported EBITA in the Asia-Pacific region increasing by 265 per cent, or 10 per cent on a constant currency basis.
SABMiller said group pre-tax profit rose to $US2.76 billion in the first half as sales rose 11 per cent to $17.5 billion.
27 Nov. 2012