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.
Contraband beer and liquor seized in Malaysia
In a report by Singapore’s Asia One, the Selangor Customs director, Datuk Badaruddin Mohamed Rafik confirmed that officers raided 345 stores this year as part of its anti-contraband Ops Outlet which began in 2010.
“We have arrested 111 suspects and of that number, 96 were compounded with a total value of over RM200,000,” he said in a public statement.
More than RM4.29 million (US$1 million) was seized over the last 12 months in the form of 533,274 litres of beer and liquor and then disposed of, after Customs officers checked the stamps on the bottles to check if they had been smuggled in or had entered the country legally.
“Disrupting criminal trade is at the heart of our strategy to clamp down on the illicit alcohol market, which costs the Government millions of ringgit every year. This is the theft from the taxpayers and undermines legitimate traders,” Badaruddin added.
According to the Confederation of Malaysian Brewers Berhad (CMBB), compared to neighbouring Asian countries, Malaysia continues to levy the highest excise tax rate on beer and stout. Following three consecutive tariff hikes from 2004 to 2006, Malaysia now has the second highest duty on beer in the world after Norway. The excise duty for beer is currently RM7.40 per litre (US$1.7) plus 15% ad valorem tax.
The high excise duty imposed on the industry impacts the affordability of legitimate beer products for consumers and as a result it is estimated that that the Malaysian government loses over RM900 million (US$211 million) annually in alcohol tax revenue including excise and import duties due to the illegal smuggling of contraband beer and stout products.
18 Dec. 2015