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.
Analysis of beer market in China
China’s transition to a “new normal” reality backfired on the brewing industry unexpectedly. Stagnation and subsequent market decline resulted from dynamic social and economic changes. There has emerged a “two speed” market where the medium class significance is growing, yet the share of main beer consumers, “blue collar” is decreasing. Also the inflow of consumers is shrinking, as demographics stopped being a growth driver. Finally, beer is giving way to other alcohol drinks....
Russia. The legislators had mercy for craft brewers
Today Viktor Zvagelskii, deputy chairman of the Committee on Economic Policy and Entrepreneurship introduced to State Duma the bill that provides amendments to the law on state regulation of production and turnover of alcohol. The document includes release of the producers of beer and beverages of natural fermentation with production capacity of less than 30 hectoliters per year from the need to connect to USAIS (Unified State Automated Information).
Mr. Zvagelsky hopes to correct a legal case that has emerged in the alcohol legislation that already provides that the main process equipment of the enterprises does not require connection to the accounting system. “However, since 1 January 2016, the purchase, storage and delivery of such products to wholesalers have to be registered in the system, which leads in practice to the fact that small producers are forced to connect to it," the Deputy says. Thus, the small entrepreneurs have lost their preferences provided by the state and have already spent 6 billion rubles on installation of USAIS.
The maintenance of the new system costs the producers additional 3 billion rubles per month, Alexei Nebolsin the member of the presidium Opora Rossii adds. “The same sum is payed by all small producers of beer and cider as excise taxes per year,” he said. According to “Opora”, this year in February, there were 991 manufactures of beverages of natural fermentation with capacity up to 30 thousand hectoliters, their products were sold by 3, 5 thousand wholesale companies and 117 thousand retail outlets. “The market of craft beer and cider is extremely small, so there is no counterfeit, as it is economically inexpedient. So why do we need the account, which costs more than all revenues from excise taxes make up?” Mr. Nebolsin is perplexed.
In January of this year, beer and cider mini-manufactures registered a decrease of turnover by 40% - 60%, the number of wholesale companies in this field has reduced by 50 %, stated in the explanatory note to the bill of Victor Zvagelskii. According to a survey conducted by “Opora Rossii” 25% of beer and cider producers have stopped their activity due to the introduction of USAIS, 27% reported a turnover decline by 25-50%. A similar decrease in turnover took place in 44% of wholesalers and 24% of stores, 30% of wholesalers and 20% of retail companies reported a decrease in turnover by 10-25%.
22 Mar. 2016