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Beer Business (Pivnoe Delo) #2-2017

Beer market of Russia 2016: PET goes to draft

The 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 Business (Pivnoe Delo) #1-2017

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.

Beer Business (Pivnoe Delo) #4-2016

Analysis of beer market in China (on Russian)

Beer market of Ukraine: big three losing weight

In 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.

Vietnam. Foreign brewers are crowding out local producers

Despite the fact that in 2015 Sabeco produced 1.38 billion liters of beer, the experts say very little growth of the company. Meanwhile, Heineken was able, for the very first time, to outstrip Habeco and to take the second place in the beer market of Vietnam.

According to Mr. Phan Dang Tuat, the former chairman of Sabeco, the competition in the industry is becoming tougher, so breweries have to struggle for every outlet in both large and small cities. Sabeco plans to hire experts to back about 800 outlets.

The difficulty is the fact that in foreign companies such specialists earn $ 4000-5000, but Sabeco is able to pay 40-50 million dong ($ 1800-2300) per month. And most importantly, that the projects of foreign companies are implemented rather rapidly, whereas the local breweries need more time to do it.

The building a united team is also an important goal of Nguyen Thi Nga, CEO of the trading company Habeco. According to him, the company needs to instantly take into account changes in the market.

Apart from foreign competitors Carlsberg and Heineken, which have long been present in Vietnam, there are new companies in the market such as Sapporo (Japan), AB InBev (USA), Shingha (Thailand). The latter purchased 25% of shares of Masan and had the opportunity to build a brewery with a capacity of 100 million litres per year.

Becoming a company with 100% foreign capital, Sapporo has expanded its dealer network. In May 2015, in Vietnam AB InBev built a brewery with a capacity of 50 million litres and plans to expand it to 100 million litres. It is expected that the brewery will provide beer to Vietnamese consumers.

The competition in the global beer market is becoming very tough, and only large companies that provide good service and have a strong sales team, can win.

Vietbao

12 Jan. 2016

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