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.
Carlsberg clocks profit in Q3, looks at expanding capacity in India
“We are looking at expanding capacity by 500,000 hectolitres,” said Michael N, Jensen, managing director, Carlsberg India. “We have the right brands in the market and we are very focussed on our strategy.”
The expansion comes a decade after the beer maker started selling beer in India. Carlsberg India, which has been chasing growth over the past two years with brands such as Tuborg, posted its first profit in the October-December quarter last week on the back of rising demand.
Carlsberg India, in its annual earnings report, said it saw a 42% growth this year led by strong demand for its beer brand Tuborg Strong, which registered the highest growth among its products which also includes Tuborg Green, Carlsberg Elephant and Carlsberg Green.
Tuborg pipped SABMiller’s Haywards brand of beer to become the second largest beer brand in India behind United Breweries (UB) owned Kingfisher. UB has a 50% market share in market that sells 270 million case of beer a year. Tuborg now has a market share of 15%, growing by almost 50% during the year, the company added.
India’s beer market has traditionally been driven by strong beer, which accounts for 85% of all beer consumed.
Growth for Carlsberg came at a time when volumes for the first half of 2015 were down by a percent. However, in the December quarter, unusually warm winters in North and better urban demand helped boost sales.
Asian markets pulled up sales for the beer company, its global chief executive told reporters post its annual earnings last week.
We see the growth of the Asian division as an opportunity. We have a stellar growth in especially India,” Cees’t Hart told Reuters. “For us, it is important to see if this strong growth in India is sustainable, by which we are building up a very attractive business pretty quickly.”
Competitors are feeling the pressure.
“Carlsberg India has indeed grown,” said Shekhar Ramamurthy, managing director at United Breweries in an interview last week. “The brand that has grown on their side is Tuborg Strong...They are in the very heavy investment mode, but they are clearly making losses,” he added.
Jensen said the company will continue to grow at solid double digits. “While the market will grow by 5-6%, we will outgrow by at least five to six times the industry,” he added.
15 Feb. 2016