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.
Tuborg Strong, Elephant bring fizz to Carlsberg’s India sales
Unlike most other markets, where Carlsberg's top seller is the milder version of the eponymous lager, the company's Indian unit has been focusing on brands such as Tuborg Strong and Elephant because strong beer accounts for 80% of country's overall sales volume of 300 million cases.
"The growth can be attributed to the long-term strategy to focus on key markets, especially cities, focused brand portfolio, expanding manufacturing footprint, increased product availability and above all a strong team," said Michael Jensen, managing director, Carlsberg India, which reported a 54% increase in sales at . Rs 765 crore during FY15 with net loss of Rs 232 crore.
However, despite the healthy sales numbers, innovations and aggressive product launches, Carlsberg's market share in India the world's third fastest growing beer market is one of its lowest globally. Tuborg, which was launched in the country as a premium brand in 2009, has now become the second largest strong brand.
Carlsberg is the third largest player in India with 15% share, trailing market leader United Breweries, which is controlled by Heineken, which has 51% share, and SabMiller which has 23% share.
"Most of the premium brands have done well in the last few years. Carlsberg seems to have taken share mainly from SabMiller and some fringe players since United Breweries has been consistent in maintaining its share," said Abneesh Roy, associate director at Edelweiss Capital.
SabMiller, the maker of Haywards and Knock Out beer, clocked 1% growth in net sales at Rs 1,940 crore, and a net loss of . Rs 127 crore in 2014-15. UB, which sells Kingfisher beer, grew 11% at RS 4,692 crore in net revenue and profit of Rs 260 crore.
The alcoholic beverages industry in India is heavily regulated, with excise and other taxes forming an important source of revenue for state governments. In states that collectively account for 70% of the industry's revenue, the government controls manufacturing, distribution, retailing and pricing of liquor.
This makes it difficult for most companies to make higher profits. In fact, SABMiller, the world's second-largest brewer, has written down $313 million (. Rs 2,000 crore) of its investment in India last year, citing increasing regulatory and excise challenges.
But Carlsberg is hopeful to be out of the red despite increasing its investment the company's seventh plant became operational last fiscal in Bihar and its existing plant in Haryana undertook capacity expansion.
9 Feb. 2016