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. ED plans to freeze Vijay Mallya’s shares in listed companies
ED has already informed market regulator Securities and Exchange Board of India about the share freeze. It will write to the National Securities Depository Limited and Central Depository Service Limited, the two national depositories.
As of now Mallya holds stakes in United Breweries Ltd, United spirit limited, and Mangalore Chemicals and Fertilizers Ltd.
ED does not want a USL-Diageo repeat
ED is looking to ensure that no big deals or transactions, such as the USL-Diageo one, takes place in near future. Earlier in February, Mallya had reached a Rs 500-crore deal with Diageo, to whom he had sold controlling stake in USL in a multi-billion dollar deal, to step down from the chairman's post of the liquor company.
Mallya's holding company UB Holdings now has a 4 per cent stake in United Spirits. He is no longer the largest shareholder in United Breweries, and has lost management control of it.
As of now Mallya still own 32.4 per cent of United Breweries (Heineken, which acquired S&N owns more, around 37.5 per cent), four per cent of United Spirits and 22 per cent of Mangalore Chemicals. More than half the shares in United Breweries and United Spirits are pledged to UB Group lenders.
Forensic investigation ordered on MCFL
As per sources the board of MCFL, which Zuari Fertilizer & Chemicals took over last year after taking control from Mallya, had appointed Ernst & Young LLP to do a forensic investigation into the Rs 200-crore investment MCFL had made in Bangalore Beverages Ltd so that any possible fraud can be ruled out.
The auditors are also asked to look into various advances made by MCFL to Mallya's flagship UBHL, of which a sum of Rs 16.68 crore was outstanding as of March 31, 2016. Bangalore Beverages is a step-down subsidiary of UBHL and is facing liquidity crunch. The audit found that these transactions may have involved irregularities and elements of mismanagement in the company.
12 May. 2016