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. CIMB Research retains Overweight on brewers
Hence, it adjusted its earnings slightly by lowering malt liquor market (MLM) volume and imputing higher average selling prices to account for the changes in the duty structure as well as the removal of the ad valorem tax.
“We maintain Overweight on the sector while switching our sector’s top pick to Guinness Anchr Bhd (GAB) from Carlsberg given the higher potential upside,” it said on Thursday.
CIMB Research said the two brewers move to hike prices on average by 2%-5% as fair as they have been maintaining prices since 2015 despite the implementation of Goods and Services Tax (GST) which came into effect in April 2015, and other cost hikes.
Any downside to MLM volume is expected to be limited given the manageable quantum of increase and consumers switching to beer from other alcoholic drinks. The removal of the 15% ad valorem tax creates a level playing field for all, it said.
“Overall, we believe that MLM volumes are unlikely to be impacted significantly. The removal of the 15% ad valorem tax across all beer categories is also positive for brewers.
“Given that all types of beer with similar alcohol content will be subject to the same fixed rate based on the duty structure, this creates a fair competitive environment regardless of the brewer or brewing location,” it said.
11 Mar. 2016