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.
China. In the 1Q2016, AB InBev beer sales in China decreased by 1.1% to 16.63 million hectoliters
According to the quarter report, industry volumes in China remain under pressure. However, AB InBev volumes continue to perform ahead of the industry, declining by 1.1% in the quarter, helped by the focus on the Core Plus, Premium and Super Premium segments.
According to the report, China beer industry volumes declined by approximately 4% in the quarter, due to economic headwinds. Company beer volumes faced a tough comparable, declining by 1.1% compared to a growth of 4.7% in 1Q15. AB InBev market share increased by approximately 45 bps, reaching an average of 19.0% in the quarter.
China EBITDA grew by 3.8% and EBITDA margin improved by 76 bps to 27.0% in 1Q16.
In 2016 financial year, company’s experts expect industry volumes to remain under pressure. Meanwhile AB InBev expects its own volumes to perform better than the industry, driven by the premium and super premium brands.
AB InBev management continues to believe the Core Plus, Premium and Super Premium segments have the greatest long term growth potential in the industry. Company’s brands in these segments represent more than 50% of their total China volumes, and are well positioned, with strong brand health metrics.
Revenue per hl grew by 2.1% in the quarter, with the benefit of favorable brand mix being partly offset by unfavorable regional mix driven by poor weather and industry weakness, particularly in the south and east of the country.
10 May. 2016