10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
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.
India. Sebi expands probe into financial dealings of Vijay Mallya firms
The matter is also being flagged to other agencies and government departments, including the corporate affairs ministry and its probe agency the SFIO (Serious Fraud Investigation Office), a senior official said.
The Sebi is looking into violation of securities market regulations including the strict disclosure requirements such as insider dealings with the promoters and related parties.
Besides, Sebi is also probing any possible violation of norms aimed at checking fraudulent and unfair trades and compromising the interest of minority shareholders.
A forensic audit has found possible irregularities and mismanagement in advances and investments made by Mangalore Chemicals and Fertilisers Ltd (MCFL), where Mallya’s UB Group remains a promoter entity despite Zuari Group having acquired a controlling stake, to his other group companies.
As a result, financial dealings of other group companies with their respective promoters are also being probed, the official said.
The board of MCFL, which Zuari Fertilisers and Chemicals Ltd took over last year after wresting control from Mallya, had appointed Ernst and Young LLP to do a forensic investigation into the Rs.200 crore investment MCFL had made in Bangalore Beverages Ltd.
The audit was also asked to look into various advances made by MCFL to Mallya’s flagship United Breweries (Holdings) Ltd (UBHL), of which Rs.16.68 crore was outstanding as of 31 March 2016.
Bangalore Beverages is a step-down subsidiary of UBHL and is facing a liquidity crunch. The audit found these “transactions may have involved irregularities and elements of mismanagement in the company.”
On its part, MCFL is also taking legal advice in connection with the findings of Ernst and Young. MCFL has made provision of Rs.200 crore for potential diminution in the value of investments in Bangalore Beverages.
It has also provided for Rs.16.68 crore advances receivable from UBHL in its books of account for 2015-16.
Various UB Group firms are already facing probes by Sebi relating to listing rule violations, while the corporate affairs ministry is also looking into alleged violations of certain provisions of the Companies Act. The role of previous auditors is also under the scanner.
10 May. 2016