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.
Myanmar. Heineken takes back Tiger and ABC beers
The two brands will now be made under the portfolio of APB Alliance Brewery Company (APB-ABC), a joint venture between Heineken and local firm Alliance Brewery.
Myanmar Brewery gave up its rights to the brands when it split from Singapore-listed Fraser and Neave last year after a drawn-out ownership dispute. F&N owned the rights to produce both beers.
Last August, the licences expired and Myanmar Brewery has not sold ABC or Tiger since. In the past, Heineken held both licences and has now taken them back.
“As the licence holder, they did a good job penetrating the market to ensure [these beers] are significant brands to Myanmar drinkers,” said Lester Tan, managing director of APB-ABC.
Tiger and ABC will now be brewed at APB-ABC’s new US$60 million brewery in Hmawbi township which opened in July last year.
When they return to the shelves, the beers will look a little different – they have been re-designed to reflect a more modern look with a stronger quality, said Mr Tan, adding that the ingredients and the taste will remain unchanged.
“Currently our factory can produce 25 million hectolitres per year, but amid huge demand for Heineken brands we are in the process of raising the capacity to produce 45 million hectolitres for all the four brands under APB-ABC,” he said.
The other two brands are Heineken and a new, locally produced beer called Regal Seven which will target the mainstream market, competing head-to-head with Myanmar Brewery’s Myanmar Beer.
Mr Tan said his company has contracts with around 150 beer stations and is selling bottles and cans to over 4000 stores. This is very low compared with the number of stations and shops across the country, he said, but growth is held back by brand competition laws.
Hiroshi Fujikawa, Myanmar Brewery’s CEO, told The Myanmar Times last year that losing Tiger and ABC was a blow. “It is always sad to say goodbye to something you have become familiar with, but it’s also important to innovate and to take on challenges,” he said, declining to discuss specific details of the contract.
“There were no licence fees. Those brands belonged to Heineken – it was their right to terminate the contract, so we had to give it up.”
31 Mar. 2016