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.
China. Tsingtao sales dropped by 4.9% because of domestic beer market decline
Apparently, the net profit dropped by 13.9% and sales fell by 4.9% in 2015, while the domestic beer market decline was 5.1%.
|Less: Cost of sales||(17,192,101,695)||(17,899,291,275)|
|Taxes and surcharges||(2,030,394,346)||(2,182,624,248)|
|Selling and distribution expenses||(5,904,539,236)||(5,682,981,368)|
|General and administrative expenses||(1,412,435,528)||(1,362,297,511)|
|Finance expenses — net||299,597,521||334,652,990|
|Asset impairment (losses)/reversals||(2,062,375)||3,513,780|
|Add: Investment income||462,412,814||23,959,509|
|Including: Share of (losses)/profits of associates and a joint venture||(4,562,375)||23,840,743|
|Add: Non-operating income||558,817,491||469,416,868|
|Including: Gains on disposal of non-current assets||29,048,431||3,216,362|
|Less: Non-operating expenses||(139,158,284)||(70,671,089)|
|Including: Losses on disposal of non-current assets||(130,560,143)||(62,932,536)|
|Less: Income tax expense||(662,778,888)||(663,466,755)|
According to the report, the full-year sales volume of Tsingtao Beer, the principal brand, reached 41.6 million hl including 17.4 million hl of domestic sales volume of the high value-added products such as Hong Yun Dang Tou (“Good Fortune”), Augerta, Classic 1903, draft beer, canned beer and small-bottled beer which realized continuous growth.
Tsingtao Brewery is the largest Chinese beer exporter. In 2015 its overseas sales increased by 16.4% to 298.1 million yuan (excluding Hong Kong and Macau). Foreign sales accounted for 1.08% of overall sales in 2015 instead of 0.88% in 2014.
Within the year, Tsingtao Beer became the first beer brand whose brand value had reached over RMB100 billion with its brand value of RMB105.568 billion, meanwhile the brand value of Laoshan had also reached RMB11.568 billion, which continued to maintain its leading position in the domestic beer market, according to the World Brand Lab.
According to the company’s plans, operating target for 2016 is to strive to realize the growth of sales volume of beer being 2 percentage points higher than that of the industry.
29 Mar. 2016