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.
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