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. Mallya may give UBL control to Heineken to settle with banks
Mallya's counsel made an offer before the Supreme Court to pay Rs 4,000 crore to settle with a consortium of banks fighting to recover unpaid loans. The proposal rests heavily on his ability to divest shares in UBL, in which Heineken owns nearly 44% while Mallya's holding is slightly above 32%.
"This offer will be met from two sources — shares in UBL and a residual stake in United Spirits. Mallya will have to offer shares to Heineken as the latter has pre-emptive rights on them," said a source close to Mallya on condition of anonymity. The Supreme Court, depending on the response from the banks, will have to lift a lower court freeze on Mallya and his Indian investment company UB Holdings selling assets, the source added.
An emailed query to Heineken remained unanswered. The Amsterdam-based company had earlier told TOI that it was watching developments involving Mallya. A spokesperson for Mallya said, "We have no comments to your queries."
UBL has a current market value of almost Rs 22,000 crore, rendering Mallya's stake worth Rs 6,700 crore, or a little over $1 billion. Mallya, who recently resigned as chairman of United Spirits, will look to offload his remaining 4% stake in the distiller. However, Diageo Plc, which acquired USL from him, already has controlling shares and has no right of first refusal on these shares. Mallya's shares, though pledged, are worth about Rs 1,500 crore.
In context, Mallya would part-sell his UBL stake as part of the loan settlement and try to remain its chairman. The latest settlement offer along with Rs 1,200 crore (from an earlier sale of assets) in an escrow account would cover the Rs 5,000-crore principal loan amount payable to the banks, sources added.
In 2009, Heineken entered into an equal joint venture with Mallya to jointly run UBL but hiked its holding through market purchases of Mallya's shares sold by the banks in the past two years. These transactions freed Heineken from the 'equal shareholding and joint management' clause, TOI reported in July last year. This had set the stage for Heineken to claim management control, but the foreign partner was in no tearing hurry given its cordial ties with Mallya.
31 Mar. 2016