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. Heineken takes larger swig, ups UB stake to nearly 44 per cent
UB’s original promoter Vijay Mallya, who has been summoned by the Enforcement Directorate and accused of defaulting on bank loans, continues to hold 32.29% stake.
The sellers included ECL Finance and Yes Bank and the average price of shares, bought on Wednesday, works out to Rs 846.27 apiece, marginally higher than Wednesday’s closing price.
The UBL shares closed 0.93% lower at R834.75 per share on the BSE.
In 2005, the UB Group had divested 37.5% stake to the Scottish & Newcastle (S&N) Group, making it an equal partner in UBL, while the acquisition of S&N made the Dutch beer giant the co-promoter of UBL. Heineken had also acquired more than 1% through an open-market transaction in December 2013.
In July last year, Heineken had bought a 3.21% stake in UBL for a consideration of Rs 872 crore from Diageo-owned United Spirits, which ceased to be a promoter in the company.
Mallya, who owes around R9,091 crore to a consortium of banks led by State Bank of India (SBI), had already sold United Spirits to Diageo in 2012 for $2.1 billion. Mallya is currently out of the country as banks have moved the courts seeking his arrest and confiscation of his passport. They have also managed to stop the $75-million exit payout Mallya got from Diageo for resigning as chairman of the spirits company. However, Diageo had already paid $42 million to Mallya on the day he signed the agreement on February 25.
Mallya has also lost control in his other UB Group company, Mangalore Chemicals and Fertilisers.
24 Mar. 2016