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. Tasmac buys 40% more beer to slake election thirst
For March 2016, orders for nearly 26 lakh cases of beer were placed as against 18.4 lakh cases in February, an increase of 40%. For March 2015, Tasmac procured 20.9 lakh cases of beer from various breweries.
For IMFL, the state-owned entity placed orders for 57.2 lakh cases for March 2016, making the state the largest liquor market in India by volume. Brandy comprised the bulk of the order (48 lakh cases). Unified Andhra Pradesh was the second biggest market for liquor companies. Tamil Nadu is crucial for spirits companies with monthly sales of around 5 million cases.
Tamil Nadu's liquor market, tightly controlled by a state corporation, normally sees a shake-up following any change of government. With prohibition being the central political theme of the upcoming election, the fate of an industry which contributes more than Rs 30,000 crore to state's revenues hangs in balance.
Tasmac operates over 6,600 retail shops. Private participation is limited to about 1,000 bars and 90-odd clubs in the state.
"There is an increase in beer procurement primarily to take care of the severe summer. As regards IMFL, it could be to complete year-end targets," an official said.
Almost all political parties are campaigning hard with prohibition as the factor to win women voters. "What happens to the man who wants to have a drink? Is any political party thinking of him?" a CEO of a liquor firm quipped.
Total government revenues in Tamil Nadu grew 9.5% for the year ended March 2015 to touch Rs 27,823 crore. "For the current year, the numbers could be much higher as Tasmac effected two price hikes — one for excise duty and the second for manufacturers," sources said.
The growth in business has been astounding for companies with political connections, while independent liquor companies have suffered a drop in procurement.
For instance, orders for Golden VAT, a company with links to former DMK minister TR Baalu, grew from 15,000 cases in 2010-11 to 35.7 lakh cases in 2015-16. However, Elite, a distillery controlled by associates of former Union minister Jagatratchagan of DMK, saw orders drop to 50.9 lakh cases from 65.2 lakh cases between 2010-11 and 2015-16. Midas, an entity close to the ruling AIADMK, rose like a phoenix during the past five years. Its orders spiked to 112.9 lakh cases in 2015-16 from a meager 31.9 lakh cases in 2010-11.
On the contrary, United Spirits lost market in TN with orders falling to 54.5 lakh cases from 97.4 lakh cases between 2010-11 and 2015-16. Empee too lost out on business with orders falling to 30 lakh cases in 2015-16 from 40.4 lakh cases in 2010-11 while MBDL received orders for 24.4 lakh cases as against 35.6 lakh cases.
14 Apr. 2016