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’s Chinese Partner Said to Seek Pitches on Snow Beer JV
The state-backed company is seeking advisers as it weighs a potential purchase of all or part of SABMiller’s 49 percent stake in China Resources Snow Breweries Co., maker of the world’s best-selling beer, the people said. China Resources has told banks it will send out a formal request for proposals as early as this week, the people said, asking not to be identified as the information is private.
Anheuser-Busch InBev NV may need to sell the stake in the brewer of Snow lager to secure Chinese antitrust approval for its 73.5 billion-pound ($110 billion) acquisition of SABMiller, which will create a beermaker controlling about half the industry’s profits. SABMiller’s stake in the Chinese venture could fetch as much as $3.6 billion, Nomura Holdings Inc. wrote in a Nov. 16 research report.
“China Resources has already learned enough from SABMiller about how to operate a beer factory effectively and now can manage it by itself,” Charlie Chen, an analyst in BNP Paribas SA in Hong Kong, said by phone Monday. “China Resources may buy the stake with another Chinese local beer firm.”
Shares of SABMiller reversed earlier losses to close up 0.1 percent at 40.315 pounds in London on Monday. China Resources shares fell 0.8 percent to HK$14.96 at 10:57 a.m. Tuesday in Hong Kong.
China Resources aims to pick advisers by the end of the year, the people said. AB InBev hasn’t yet decided whether it will sell the stake, and China Resources isn’t set on any particular course of action, the people said.
Several banks have reached out to China Resources in recent weeks to offer financing for any potential buyout of the Snow joint-venture stake, according to the people. China Resources is seen as the logical buyer if AB InBev decides to sell, as it has a right of first refusal, the people said.
Representatives for AB InBev, China Resources and SABMiller declined to comment.
Beer sales in China will expand 41 percent in the five years through 2019 to reach 683 billion yuan ($107 billion), according to a June report from research firm Euromonitor. SABMiller said its Chinese beverage volumes declined 3 percent in the first half of its fiscal year due to crimped consumer spending, even as China Resources Snow outperformed the market.
Snow beer, which had a 23 percent market share in China last year, outsells all other beers globally, Euromonitor data show. The partnership between SABMiller and China Resources, which began with two breweries in 1994, operates more than 90 breweries across China and employs more than 59,000 staff, according to SABMiller’s website.
14 Dec. 2015