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. Maharashtra govt under pressure to stop water supply to breweries in Aurangabad
For now, the water works department decided on 17 April to cut water supply to industrial units in Marathwada by 10% and to the breweries and distilleries by 20% till 30 April. Aurangabad district collector Nidhi Pandey told PTI that the government would review the situation on 30 April and decide the future course.
The official quoted earlier said the department has asked the Aurangabad divisional commissioner to submit a report this week on allocation of water to each category of consumers, including the breweries. He admitted that the government was under immense pressure to stop water supply to the beer industry.
The opposition Congress and ruling alliance partner Shiv Sena have called for stopping supply to the beer and liquor industry in Aurangabad. On Monday, Congress workers in Aurangabad staged demonstrations against water supply to beer and liquor producing units. On Sunday, Shiv Sena president Uddhav Thackeray made a similar demand, saying supply to the beer industry could not be a priority when people were getting drinking water once every three days in large parts of Marathwada.
Ashish Garde, president of the Chamber of Marathwada Industries and Agriculture (CMIA), said all industrial units in Marathwada located on the estates developed by the Maharashtra Industrial Development Corporation (MIDC) get 4 million litres of water per day from MIDC. “This includes the breweries and distilleries. We do agree that the water situation has turned quite grave but stopping supply to industries in times of drought will be counterproductive because the industry provides jobs to people rendered jobless by drought,” Garde said. Aurangabad has 16 breweries and distilleries, including foreign brands like Carlsberg and SABMiller, and Indian brand United Breweries which produces Kingfisher beers.
The water works department official said the government was not in favour of stopping the supply. “Having said that, such demands win immediate popular support and forces the government to act, as happened in the case of IPL (Indian Premier League),” the official said. An NGO has filed a public interest litigation against holding IPL matches in drought-hit Maharashtra, claiming that watering of grounds consumed 60 lakh litres of water. Last week, the Bombay High Court asked the Board of Control for Cricket in India to move matches after 30 April out of Maharashtra.
“Manufacturing has already been hit by water cuts and there should not be any populist decisions to make it worse,” Garde said. He added that the CMIA was trying to find out how many industrial and ancillary jobs get created for consumption of every litre of water. “Even the government and people making such demands should do this data analysis,” he said.
19 Apr. 2016