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.
Malaysia. Traders fear booze tax hike
Those in the industry fear that the anticipated upward tax hike next month would be a burden to the consumers. The last hike was a decade ago.
Malaysia Singapore Coffee Shop Proprietors’ General Association president Ho Su Mong said any increase in excise duty would have adverse effects on coffee shop operators.
“This is not the time to raise beer taxes as coffee shop operators are already affected by the Goods and Services Tax (GST),” he told The Star yesterday.
“At present, between 4,000 and 6,000 coffee shop operators are finding it hard to survive.
“We hope the Government would reconsider any move to raise beer tax for the time being.”
Connexion Group’s group chief executive officer Kent Chua said a hike in excise duties would have a ripple effect on the industry.
“We would certainly like to appeal to the Government to not rock the boat further by increasing excise duty for alcoholic beverages and in the long run, look into serious tax reformation,” he said in a press statement.
He said a reduction in alcohol consumption would also result in lower revenue for the Government in the long run.
“For this year, there have been more bars and pubs that have closed down in a year than ever in the past five years,” he said.
Chua, whose company operates the popular Beer Factory, also said an increase could lead to a surge in alcohol smuggling.
Excise duty for beer currently is RM7.40 per litre plus 15% ad varolem tax.
Sids’ Pub’s proprietor Geoff Siddle said his business would surely be affected.
“Some pubs may have to let go some of their staff as sales drop,” he said.
Siddle, who has been operating pubs here for 20 years, also warned of an increase in alcohol smuggling, particularly in Sabah and Sarawak.
“Some may even travel to neighbouring countries to have cheaper drinks,” he said, adding that an increase in excise duties would hit the local food and beverage industry.
There are about 3.5 million alcohol drinkers in the country, which is the 10th largest consumer in the world, with an average RM2bil spent on such drinks annually.
The country has the third highest beer excise duties in the world, behind Singapore and Norway.
Prices of beer and stout varies depending on location and is sold between RM6 per can and RM18 per 500ml bottle.
1 Mar. 2016