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.
Japanese drinks groups seek global depth
Asahi, whose acquisitions had focused on the Asia-Pacific region, has bid for four SABMiller companies, including venerable brewers Birra Peroni and Royal Grolsch. The 2.55 billion euro ($2.89 billion) deal would mark the first major Japanese push into European beer.
Sitting atop the domestic market, Asahi has a solid earnings base from which to venture outward. But it, too, is feeling the weight of the demographic and other factors depressing Japanese beer consumption. In volume terms, sales of its flagship Super Dry brew are down by roughly half from their peak. The European acquisition will add some much-needed geographic diversity to its business, with foreign sales expected to rise to nearly a fifth of the total.
Rival Kirin Holdings has led the way in the race to globalize. "We will solidify our position in Asia and Oceania," President Yoshinori Isozaki says.
Last summer, Kirin made a subsidiary of Myanmar Brewery, the biggest in the Southeast Asian country, bringing it alongside group member Lion, Australia's top beer company. Kirin also owns a nearly 50% stake in Philippine market leader San Miguel.
In Myanmar, Kirin aims to double sales to 50 billion yen ($445 million) within five years. It will transplant production technology to the local unit to boost efficiency and quality. And it may introduce its mainstay Ichiban Shibori beer to the local market, according to Isozaki.
Suntory Holdings has become the world's third-biggest distiller through its $16 billion acquisition of Beam in 2014. It is combining sales channels with the U.S. spirits group, seeking growth in exports to North America and other markets. Collaborations that exercise Suntory's strength in product development, such as canned highballs made with Jim Beam bourbon, are also in the works. Suntory aims to reach 4 trillion yen in global sales, a gain of 50% over the current level, by 2020.
Sapporo Holdings became the first Japanese beer company to enter the Vietnamese market in 2010. It revamped its main local brew last fall and expanded sales nationwide. President Tsutomu Kamijo reports solid progress and says the brewer will keep trying to stir up fresh local demand.
Global consolidation is proceeding apace in the beer industry, as shown by top-ranked Anheuser-Busch InBev's more than $100 billion bid to acquire No. 2 SABMiller, making overseas expansion all the more important for their smaller Japanese competitors.
12 Feb. 2016