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....
Diversification key to globalization for Asian companies
The top Philippine brewer San Miguel established its first overseas footprint in Hong Kong in 1948, and today it is the only one left in the territory. Seeking for decades to be competitive in the "showcase of all breweries of the world," as Ferdinand Constantino, San Miguel's senior vice president and chief financial officer, describes it, the company expanded further to mainland China, Indonesia, Vietnam and Thailand, mainly through acquisitions, and turned them into a "platform for San Miguel" by leveraging its brand recognition. Today, the brewer also exports to about 80 markets, not only in Asia but in North America and Africa as well.
In recent years, San Miguel's diversification has gone beyond its core business of beer, food and packaging -- and into infrastructure. The main driver was the fact that the company was controlling 95% of the local beer market, and infrastructure in the Philippines was "very, very, inadequate." Taking advantage of the recent two administrations' moves to privatize formerly state-owned energy and infrastructure assets, the company diversified into a very different field.
26 Apr. 2016