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.
PE firm KKR makes full exit from Vietnam’s Masan Consumer
In a simultaneous announcement, Masan said, that it closed the first funding tranche worth $650 million, part of the $1.1-billion strategic partnership it struck with Thailand’s Singha Asia Holding Pte Ltd last month.
Commenting on its biggest PE bet in Vietnman, Ming Lu, co-head of private equity for KKR Asia, said in a release: “KKR is proud of the successful and win-win partnership with Masan Group. Masan Consumer has established itself as a leader in the Vietnamese fast-moving consumer goods industry.”
“Since KKR entered into partnership with Masan Consumer in 2011, the company has grown both organically and inorganically, capitalising on the structural consumption trends and rising middle class potential in Vietnam, according to KKR statement.
“KKR’s investment has also been an important validation of our business model and our growth potential,” said Seokhee Won, deputy CEO of Masan Group and CEO of Masan Consumer.
In July last year, a representative from Masan Group confirmed to Deal Street Asia that KKR had sold half of its holdings to make a 100 per cent return on its initial investment. Then in late December, KKR sold another tranche of 10 million shares of the food firm to own only 7.93 per cent.
29 Jan. 2016