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.
Greene King enjoys happy Christmas amid surge in beer sales in China
The company, which owns Belhaven in Scotland, rang up a record £6.8m retail sales on Christmas Day when many people chose to eat in its pubs.
Sales volumes for Prosecco increased by 69 per cent over the festive period.
In an update on trading in the 40 weeks to 7 February, chief executive Rooney Anand said all divisions did well during the important festive period.
In the two Christmas weeks Greene King grew pub and restaurant sales by 5 per cent on a like for like basis, stripping out the effect of changes in the estate.
The Spirit Pub Company, which it acquired in June, grew like for like sales 5.2 per cent.
The company said sales of its Greene King India Pale Ale had been helped by a “popularity surge” in China.
Sales of the beers the group brews rose 3.9 per cent in total on a volume basis in the 40 weeks to 7 February.
Mr Anand said the integration of Spirit was progressing well with the company reporting encouraging signs from rebranded trial sites. Greene King has made continued progress in terms of delivering the synergies it expected to achieve through the £774m deal.
The enlarged group operates around 3,000 pubs, restaurants and hotels including 300 in Scotland. Brands include Loch Fyne Seafood & Grill.
Greene King grew like for like pub and restaurant retail sales by 2.2 per cent in the 40 weeks to 7 February.
Sales in pubs managed by Spirit increased 1.1 per cent on a like for like basis.
The group said its expectations for the full year are unchanged despite the current global economic uncertainty.
Greene King did not provide an update on trading in Scotland.
In September the company said the reduction of the legal drink-drive limit in Scotland in 2014 was still having an effect on trade.
It said sales growth was depressed by the change in the law in the first 18 weeks of the financial year.
Like for like sales in the retail business grew by 1.3 per cent over the period. Sales grew 1.8 per cent when the effects of the change in regulations were stripped out.
11 Feb. 2016