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.
Consolidated Breweries Gets Shareholders Approval For Benue Brewery, DIL/Maltex Merger
The approval was given at a court-ordered extra-ordinary meeting of Consolidated Breweries in Lagos.
DIL/Maltex and Benue Brewery are subsidiaries of Consolidated Breweries Plc and engaged in the same line of business as Consolidated Breweries. Consolidated Breweries owned 97.83 percent of the equity in DIL/Maltex and 100 percent of the equity in Benue Brewery.
Chairman of Consolidated Breweries Plc, Prof Mrs. Oyinade Odutola-Olurin explained that the primary objective of the mergers was to streamline the management and its corporate governance, in line with the operations of Consolidated Breweries and its subsidiaries.
“The merger will lead to administrative efficiencies, cost reductions and operational synergies; and be beneficial to all stakeholders of Consolidated Breweries,’’ she said.
Odutola-Olurin added that the post-merger entity would capture positive economy of scale and achieve significant synergies through enhanced operational and administrative efficiencies, a streamlined supply chain, and a unified service delivery platform.
The Chairman of DIL/Maltex Nigeria Plc, Chief Samuel Bolarinde and his Benue Brewery counterpart, Steven Ameh, at separate meetings noted that the merger schemes would provide an opportunity for Consolidated Breweries to better utilize its assets and further streamline its operations.
The combination of the assets of Consolidated Breweries and DIL/Maltex and Benue Brewery will increase Consolidated Breweries’ manufacturing capacity while streamlining overlapping costs, resulting in increased earnings, the duo said.
The Chairman of Benue Brewery, Steven Ameh, said “Significant operational synergies will be generated from the optimization of key operations, particularly the manufacturing, overall management, administration and accounting functions. Also the merger would therefore result in improved returns to the shareholders and employees while customers would also benefit from access to a wider operational platform.”
Under the terms of the two separate schemes of merger, all the assets, liabilities and undertakings of both DIL/Maltex and Benue Brewery including real property and intellectual property rights, were transferred to Consolidated Breweries. The entire share capital of DIL/Maltex comprising 350,000 ordinary shares of N1.00 each were cancelled; and DIL/Maltex stands dissolved without being wound up, a statement released by the company said.
It added that “In consideration for the transfer of all the assets, liabilities and undertakings of DIL/Maltex to Consolidated Breweries, it was approved that each DIL/Maltex shareholder would receive one ordinary share of Consolidated Breweries, credited as fully paid-up in exchange for 20 ordinary shares held in DIL/Maltex as at the terminal date.”
“The same propositions apply to Benue Brewery while the entire capital of the company comprising 500,000,000 ordinary shares of N1.00 each were cancelled and Benue Brewery stands dissolved without being wound up.”
On post scheme dividends and other rights, the company said the scheme shares to be issued to DIL/Maltex shareholders shall, upon the DIL/Maltex effective date, rank pari-passu in all respects and shall form a single class of shares with the existing ordinary shares in the share capital of Consolidated Breweries, Accordingly, DIL/Maltex shareholders shall be entitled to any dividend, bonus issues, and other distributions/rights made by Consolidated Breweries to holders of its fully paid ordinary shares.
18 Jan. 2013