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.
UK. Owner of Woodchuck Cider Approves Sale to Irish Rival
The deal is the latest in a flurry of recent acquisitions in the beverage industry, as giants like AnheuserBusch-InBev and Heineken search for new growth markets.
Under the terms of the deal announced on Tuesday, C&C, based in Dublin, will acquire Vermont Hard Cider, whose brands include Woodchuck Cider, the largest cider brand in the United States.
The deal will combine C&C’s own cider business, including brands like Magners, Bulmers and Gaymers, with those of Vermont Hard Cider, as C&C looks to expand its business in the United States.
“This transaction transforms our international cider business and accelerates our growth prospects,” C&C’s chief executive, Stephen Glancey, said in a statement.
Shares in the C&C Group rose 6 percent in morning trading in London on Tuesday.
Vermont Hard Cider, based in Middlebury, Vt., reported a pretax profit of $10 million last year, which is expected to increase 50 percent, to around $15 million, in 2012, according to a company statement.
The beverage industry is going through a round of consolidation. AnheuserBusch-InBev agreed this year to buy the share of Grupo Modelo that it did not already own for $20.1 billion. The Dutch beer giant Heineken also recently received shareholder approval to buy Asia Pacific Breweries of Singapore for around $4.6 billion.
C&C said it would finance the deal for Vermont Hard Cider through existing cash reserves and bank loan facilities. The deal is expected to close early next year.
18 Jan. 2013