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.
Malaysia. Carlsberg expects a tough year in FY16
"We see subdued consumer sentiment; spending power will not come up during the year," Carlsberg managing director Henrik Juel Andersen told reporters after the company's annual general meeting today.
He said even though it is a tough year moving forward, there are still opportunities for growth. He added that the brewer will not reduce its investment in its brands.
Andersen also expressed his disappointment towards the excise duty hike on March 1, which he described as "hefty", and favours the importers of foreign beer and liquor over local beer producers.
The new tax regime saw the quantum of a tax increase on locally produced beer, stout, and cider, ranging from 10% to 99%.
"It has forced us to increase our price," he said, adding that this may encourage an illicit trading of beers.
The group posted an increase in net profit by 18.36% to RM74.48 million in its fourth quarter ended Dec 31, 2015 (4QFY15) compared to the corresponding quarter in 2014, due to effective revenue optimisation, better product and price mix, as well as prudent cost management across the group.
For its full year (FY15), Carlsberg registered a slight increase of 2.05% in net profit compared to a year ago.
At 4.13pm, shares of Carlsberg traded unchanged at RM13.78, for a market capitalisation of RM4.25 billion.
22 Apr. 2016