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.
Malaysia. Guinness Anchor boosts profit by 19.3% through cost reduction
The brewer told Bursa Malaysia that during the three months to Dec 31, 2015, it phased certain brand advertising and promotion investments, which will take place in the coming months. The company also achieved higher sales to retailers.
Despite higher sales driven by the Chinese New Year sell-in (sale to retailers), GAB’s revenue growth was marginal at 0.7% to RM524.55mil. “The underlying growth was partially off-set by the replacement of sales tax by the goods and services tax,” it explained.
GAB managing director Hans Essaadi said in a press statement: “Profit in the last quarter was largely due to our strategic commercial initiatives and taking the ongoing cost management practices to the next level. The excellent anti-contraband work carried out by the Government also helped our bottom line.”
However, he said GAB remained cautious in the year ahead despite favourable growth.
“We are confident GAB’s strong fundamentals will continue to help us maintain our leading market position in Malaysia. However, we are concerned that consumer sentiment may remain weak in 2016 in a challenging and changing environment,” he said.
“In view of the challenging year ahead, we will continue to focus on delivering key strategies for the financial year, whilst staying agile to face the changing environment. Backed by a resilient first six months performance, we remain cautiously optimistic about delivering a good performance for FY2016.”
Its half-year net profit rose by 17.% to RM153.94mil on 1.7% higher revenue of RM929.55mil.
In this challenging environment, GAB said, it strived to be innovative in its offerings.
In the last six months, the company launched four new variants -- Tiger White, Smirnoff Ice Black and limited edition offerings, Tiger Radler Mandarin Orange and Strongbow Red Berries. A limited edition packaging, Heineken Spectre, was also introduced.
On Nov 25 last year, GAB changed its financial year from June 30 to Dec 31. As a result, the financial statements for 2016 will be for a period of 18 months, beginning July 1, 2015 and ending Dec 31, 2016.
GAB, which is celebrating its 50th anniversary this year, has declared a special dividend of 30 sen per 50-sen share to commerate the occasion, on top of the interim dividend of 20 sen for this financial year. The dividend is payable on April 15.
GAB shares closed 10 sen higher at RM13.08 on Tuesday.
20 Jan. 2016