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.
India. Keeping a watch on Mallya crisis: Heineken
Heineken owns 42% while Mallya holds 32.8% in UBL. But mostof Mallya's shares in the company are pledged to banks and some offered as security to Diageo as part of loan guarantees extended to F-1 team Force India. The foreign partner has been mopping up pledged shares offloaded by the lenders in the past. As banks take aggressive steps to recover unserviced loans of Kingfisher Airlines, more shares owned by Mallya may come into the market, giving Heineken a chance to hike its shareholding.
"We have been following developments in the Indian press recently. But we would not comment at this stage," a Heineken spokesperson said over the phone from Amsterdam while responding to TOI's queries regarding the latest development. Unlike in the case of Diageo, Mallya has had stable ties with the family-run Heineken, whichhasbeen a patient partner till date.
But Mallya'songoing personalcrisis may havedashed allhishopesof negotiating a sale to Heineken at a premium, sources said. "Any settlement with the banks will involve his UBL shares and the current scenario does not provide Mallya much room to negotiate," an industry sourcesaid. Mallya'sholdings in the company is worth around Rs 7,000 crore at current market value.
Heineken entered UBL through an acquisition of Scottish & Newcastle (S&N), the original foreign partner of Mallya. In fact, S&N representatives on UBL board had expressed concerns about Mallya's decision to use Kingfisher brand for the civil aviation foray a decade ago.
11 Mar. 2016