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....
Guinness Anchor to be Heineken Malaysia
With GAB changing its name to Heineken Malaysia Bhd come April 20 upon shareholders’ approval, GAB managing director Hans Essaadi assures that the brewery will maintain its leading market position as a premium drinks company even with the change in shareholding.
Dutch brewer Heineken NV now controls GAB after it acquired 100% stake in GAPL Pte Ltd last October from Diageo Plc. GAPL held 51% interest in GAB.
Market observers fear the leading local brewery will not be making better profit margins this year amidst the soft consumer sentiment. GAB’s profit margins narrowed in 2015 after the goods and services tax kicked in last April. In FY14, its net profit and revenue dipped for the first time after 12 years.
No doubt with a higher inflation rate expected in the second half of the year, Essaadi says that with the strong brand presence and a wider distribution network after Heineken’s takeover, it will perhaps see better profit growth this year.
“With the long-term agreement with Diego Plc, we will continue to carry Guinness as a key brand.
“Also Heineken NV has more than 250 best-selling brands around the world and we are open to these brand portfolios now,” says Essaadi in an interview recently, adding that with the additional brands coming in and Heineken’s name, it can increase its market share.
As GAB celebrates its 50th anniversary this year, Essaadi believes its experience in brewing with good brands will give the company the competitive edge.
“It’s just a corporate brand change, but it’s business as usual for us and we are consumer-inspired, customer-oriented and brand-led.
“We lead in the premium category and Heineken is the No. 1 international premium brand,” he says.
Also, with world-class marketing strategies and execution, he says GAB has the proven ability in capturing the imagination of consumers and has been prioritising innovation to meet the changing consumer needs.
“Malaysian consumers are becoming more discerning, developing a taste for more cosmopolitan offerings and a preference for exciting experiences,” explains Essaadi, adding that it had launched four new variants in the past nine months, including Tiger White, Smirnoff Ice Black, Tiger Radler Mandarin Orange and Strongbow Red Berries. Apart from these, a new limited edition packaging Heikenen Spectre was also introduced last year.
In terms of cost-saving measures, since GAB is now part of Heineken’s global supply chain, it will enjoy huge cost-savings through strategic procurement that will improve its efficiency, he notes, adding that being part of Heineken’s “Brewing a Better World” initiative is also towards building a sustainable future and growth, says the Dutch.
Despite GAB’s subdued performance last year, Essaadi says the company achieved strong results in reducing consumption of water by 19.2%, thermal energy 9.6% and electricity 6.2%.
Essaadi aims for the brewery to continue operating at optimum levels with minimal wastage of resources.
Notwithstanding, GAB has always believed in people being the core of its business.
“People are the lifeblood of our business and our people-focused culture is built on strategic areas of focus that help shape and develop our most valuable asset.
“Our employees have a passion for quality that is unmatched, enabling the company to grow in the right direction,” he says.
11 Apr. 2016