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.
China. San Miguel registers HK$16.9-m loss in Hong Kong operation
SMBHK said in a statement posted on its Web site the group’s consolidated revenues stood at HK$569.5 million, down 22 percent year-on-year.
“Overall sales volume of the company in the [Hong Kong] territory declined by 17 percent, mainly because of the slow demand in the on-premise sales channel partly due to lower tourist arrivals and the non-renewal of distribution agreements with Anheuser-Busch In Bev China Sales Company Limited and Anheuser-Busch InBev International GmbH & Co KG in 2014, as disclosed in a profit warning announcement last 25 January 2016,” SMBHK said.
Also contributing to the net loss were operating costs associated with the sales and marketing operations of the affected products, which were redirected and reinvested in the development of new, premium, specialty and craft brands.
The company said it signed up and develop a new stable of premium, specialty and craft brands in line with the company’s key business strategy of sustaining a broad and diversified portfolio of brands.
SMBHK earlier signed an agreement with Mahou S.A. as the exclusive distributor of Mahou Cinco Estrellas. It also started selling Angry Orchard Cider, Mac’s Great White, Samuel Adams Rebel IPA, Spitfire Kentish Ale, Whitstable Bay Blonde and Whitstable Pale Ale.
Kirin beer brands, which the company distributes exclusively within the territory, also continued to perform strongly, registering a 32-percent volume improvement over the previous year’s level.
SMBHK’s South China operations, meanwhile, posted double-digit improvement in consolidated sales volume over the previous year, with sales revenues up slightly.
Despite these improvements, South China operations registered operating losses compared with the previous year due to one-off gains in 2014.
SMBHK said it expects Hong Kong and South China operations in 2016 to significantly turn around by investing in the San Miguel brand and actively participating in the premium, specialty and craft beer segment to regain volume loss and market share.
“We will expand the wholesaler channel and make it a key component of the company’s going-to-market strategy in order to achieve broader distribution, higher volume and to generate distribution cost savings,” SMBHK said.
The company said it would strengthen the brand equity of San Miguel and Dragon brands and seek new areas of growth in the exports business.
8 Feb. 2016