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....
Thailand. ThaiBev’s net profit jumps 30% to $333m in Q1
Thai Beverage PLC’s (ThaiBev) 1Q16 net profits bubbled up 30% YoY to THB8.6b (roughly $333m) thanks to increased profitability of Fraser and Neave/Frasers Centrepoint Limited as well as growth in ThaiBev’s spirits, beer, and food segments.
According to a report by OCBC, ThaiBev also saw a narrowed net loss for nonalcoholic beverages (NAB) during Q1.
Meanwhile, ThaiBev’s revenue for the quarter grew 20.7% to THB55.2b ($2.14b) thanks to growth in sales of spirits, beer, and NAB divisions. However, food segment’s sales posted a marginal pullback.
“Recall that in 4Q, their market share had increased from 30% to 38%. NAB losses narrowed We previously mentioned that NAB losses may narrow for the year, as FY15 included the launch of 100+, Jubjai, and Oishi in Malaysia,” notes OCBC.
Aside from the anticipated decrease in SG&A expenses, growth in volume was propelled by products like Jubjai, drinking water, and Est. With the lower oil prices, ThaiBev was also able to enjoy favourable packaging costs.
With regards to the the proposed sugar tax on soft drinks in Thailand, management asserts ThaiBev is ready with potential options like product innovation and possible reductions in sugar content.
16 May. 2016