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.
Japan. Asahi’s Profit Forecast Below Estimates Amid Slowing Economy
Net income will probably be 80 billion yen ($697.4 million) for the year ending December 2016, up 4.7 percent from 2015, the Tokyo-based company said in a statement Tuesday. That compares with the average estimate of 89 billion yen from 10 analysts compiled by Bloomberg. Sales are expected to grow about 0.7 percent, it said.
A higher yen is expected to cut into the company’s profits in 2016 when it repatriates earnings from its overseas operations which make up about 13 percent of Asahi’s total sales, said Managing Director Yoshihide Okuda at a post-earnings press conference in Tokyo Tuesday.
Asahi is among Japanese brewers looking to expand abroad to counter falling domestic consumption amid a stagnant economy, shrinking population and changing consumer tastes. Japan’s central bank unveiled negative interest rates last month as it seeks to spark growth in the country.
The company said last month that it’s considering making an offer for SABMiller Plc’s Peroni and Grolsch brands in Europe. Okuda declined to comment on the deal Tuesday.
"We will do M&As that will enhance our corporate value regardless of whether or not they’re in or out of Japan,” he said at the briefing.
Asahi, which also sells spirits and non-alcoholic beverages and owns about 20 percent stake in China’s Tsingtao Brewery Co., said it is also considering buying U.S. soft drinks company Talking Rain and the Nikkei newspaper reported in December that it could cost about 50 billion yen,.
The company plans to target a dividend payout ratio of 30 percent by 2018 as well as at least 10 percent return on equity in the three years through 2018, according to the Tuesday statement.
Asahi also announced that Akiyoshi Koji, the head of its beer subsidiary, will become group president, replacing Naoki Izumiya who has been appointed chairman. He will retain his post as chief executive officer.
Net income at the Japanese beer maker rose 11 percent to 76.4 billion yen in 2015, the company said.
Asahi’s shares closed 3 percent lower at 3,625 yen in Tokyo trading before the announcement. The benchmark Topix slumped 5.5 percent.
9 Feb. 2016