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.
Batista Loses Title as Brazil’s Richest to InBev’s Lemann
Batista’s shipbuilder, OSX Brasil SA (OSXB3), fell 6.8 percent to 8.95 reais at 12:37 p.m. in Sao Paulo, leading declines by five of his six publicly traded companies. The 56-year-old’s net worth now stands at $18.6 billion, down by almost half since the end of March, according to the Bloomberg Billionaires Index.
Lemann commands a fortune of $18.9 billion. Shares of AB InBev, the world’s largest beer manufacturer whose $52 billion merger he helped engineer, rose 1.3 percent to 67.43 euros today.
“Brazil deserves to have more Brazilians on this list,” Batista said in an e-mail, declining to comment on whether he could reclaim the top spot from Lemann. “May all businessmen continue investing and creating jobs, like we do at EBX!”
Batista, who has made repeated vows to pass Carlos Slim as the richest man on Earth, fell from his perch following a string of disappointments that began in June, when his flagship, OGX Petroleo & Gas Participacoes SA (OGXP3), cut its initial production targets less than five months after pumping its first barrel of oil.
OSX tumbled today after a contract was canceled that would have allowed the company to help build five drillships, according to Auro Rozenbaum, an analyst with Banco Bradesco SA. (BBDC4) Also today, Batista’s port-development unit LLX Logistica SA (LLXL3) named a new chief executive, marking the sixth shakeup of top management at one of his companies since June.
The billionaire’s closely held ventures now account for the bulk of his fortune after Abu Dhabi’s Mubadala Development Co. bought a 5.63 percent stake in his EBX Group Co. empire at the end of March. Based on the market value of Batista’s publicly traded companies at the time, the $2 billion deal valued his closely held units at about $10 billion.
“Eike has the potential for explosive returns, but it’s also a business full of challenges,” said Chris Palmer, who helps manage $2.5 billion of assets as London-based director of global emerging markets for Henderson Global Investors Ltd. “The performance of the companies that Lemann controls has been very strong.”
Buoyed by steady demand for beer, Lemann and his two billionaire partners, Marcel Herrmann Telles and Carlos Alberto Sicupira, have seen their wealth climb more than 50 percent this year after orchestrating deals such as the $20.1 billion purchase of Mexico’s Grupo Modelo SAB in June. Lemann’s largest asset is his 10 percent stake in AB InBev, worth more than $14.7 billion. He declined to comment for this story.
The Bloomberg Billionaires Index takes measure of the world’s wealthiest people based on market and economic changes and Bloomberg News reporting. Each net worth figure is updated every business day at 5:30 p.m. in New York. The valuations are listed in U.S. dollars.
3 Dec. 2012