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....
India. Liquor stocks slide on likely ban in Tamil Nadu
United Spirits (USL), the world's second-largest spirits company by volume, fell over 3% to end at Rs 2,541.05 on Wednesday. United Breweries dropped almost 2% to close at Rs 733.10. Other liquor makers, such as Pioneer Distilleries (a subsidiary of USL), Associated Alcohol and Breweries and Empee Distilleries, all rose between 1% and 5% on the same day.
Analysts feel that this could be because these are relatively smaller companies. However, they warn that prohibition will not spare any company.
"Prohibition looks like it is on the cards if the DMK wins," said Abneesh Roy, associate director at Edelweiss Capital. "But the timeline for the prohibition and the kind of liquor that is going to be banned is awaited. Apart from the Tamil Nadu election results, another factor that is causing concern is the talk of Maharashtra cutting water supply to liquor companies," Roy said.
His top pick is United Spirits. In April, the Aurangabad bench of Bombay High Court ordered the Maharash ..
Some feel that it is too early to take a call on these stocks. "We'll have to wait for the results," said Gautam Duggad, head of research - institutional equities, Motilal Oswal Financial Services. "It is tough to comment on whether the proposed restrictions will have an impact unless there is clarity on how prohibition is going to be achieved — whether through a staggered or a blanket ban." Even with these setbacks, analysts feel United Spirits is an attractive bet. "We have a positive outlook on United Spirits as it is the leader and the industry is placed favourably on a long term basis," said Duggad.
19 May. 2016