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. Potential 10% hike in alcohol duty by Feb 1
According to a report in Sin Chew Daily yesterday, a 10% hike is expected in the duties for liquor and other alcoholic drinks.
The report said the new rates are expected to take effect on Feb 1, which means the "yam seng" (toast) is going to be more expensive for the upcoming Spring festival.
At RM7.40 a litre, the beer excise duty in Malaysia is third highest in the world, after Norway and Singapore.
A source said a hike in duties on alcoholic beverages, which was not done in the last 10 years, is inevitable but said the government has not finalised the date of implementation due to a conflict of opinions on the timing.
It is learnt that officials in favour of a hike before the Chinese New Year believe it would boost the government coffers due to the big demand during the festival but detractors said increasing duties before the festival would dampen sales and encourage smuggling activities.
The sources said the hike would cover all alcoholic drinks except herbal wines.
Customs director-general Datuk Seri Khazali Ahmad, when contacted by the Chinese daily, said he was not aware of the matter and could not confirm or deny talk of the impending hike.
Analysts said a 10% increase in duties on alcoholic drinks will boost the government coffers by RM150 million a year.
However, brewers opined that sky-high duties on beers would impact negatively on the tourism industry in the long run, especially when competitors for tourist dollars such as Thailand, Hong Kong, Vietnam, and India have much cheaper beers.
"The notion that raising the duties on beer can boost the government coffers is a misconception. The examples of many countries show that increasing the duties only encourages smuggling activities, as well as prompting many drinkers to switch to cheaper beverages with higher alcohol content."
28 Jan. 2016