10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
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.
Philippines. San Miguel Corp. planning P80 bln preferred shares offering
SMC intends to seek regulatory approval for the shelf registration of up to P80 billion worth of Series 2 preferred shares, or 1.066 billion shares at a price of P75 apiece. The shares will be issued for a period of three years.
The first tranche of the offer will involve the sale of 400 million preferred shares, yielding up to P30 billion, San Miguel said.
The company, however, did not indicate the timing of the issuance or how it intends to use the proceeds from the share sale.
SMC President and Chief Operating Officer Ramon S. Ang had said in October the company may raise as much as $1 billion from the sale of preferred shares to repay dollar debt.
In September, SMC raised P33.5 billion by selling preferred shares at P75 apiece to partly refinance P54 billion worth of similar securities due that month. Investors swamped that offering, which was five times oversubscribed.
San Miguel has some $13 billion equivalent of bonds and loans outstanding, according to data compiled by Bloomberg. Of that, US currency notes total $6.8 billion, with a weighted average fixed coupon of 5%.
Meanwhile, Mr. Ang on January 15 said the conglomerate will partner with Japan’s Kirin Holdings Co Ltd if it bids for SABMiller PLC’s Grolsch and Peroni beer brands.
Mr. Ang told Reuters San Miguel was still interested in acquiring the European beer brands through San Miguel Brewery Inc. Kirin owns nearly 50 percent of San Miguel Brewery.
He did not say whether his company had already submitted a bid.
Anheuser Busch InBev which agreed to buy SABMiller has sought bids for Grolsch and Peroni and attracted a number of international suitors.
SMC plans to at least double its revenues to $40-50 billion in the next five years, through organic growth and acquisitions, Mr. Ang had said in October.
Led by Mr. Ang, the country’s largest food and beverage company started an aggressive diversification program in 2007 that saw the conglomerate make a series of acquisitions in attractive growth sectors such as infrastructure, fuel and oil, energy, telecommunications and banking.
21 Jan. 2016