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.
In 2015 Tsingtao profit fell in all regions of China, only export grew
As the net profit of the company consists of incomes from different regions, let us consider which of them had the biggest impact on the financial performance.
The biggest decline was observed in Dongnan Region which is responsible for production and distribution in Southeast China.
The revenue there fell by 15.59% and the loss amounted to 25.78 mln yuan. This region provides 8.54% of the company’s sales.
Tsingtao Brewery incurred substantial losses in Huanan Region, where the revenue came 11.45% down, while the net profit decreased by 75.54%. This region accounts for 14.1% of businesses’ profit in South China. Here the company is quite poorly represented as compared to competitors.
Though in Shandong Region the revenue decline amounted to only 1.82%, this influenced Tsingtao performance substantially as Shandong region and surrounding regions account for 50.22% of the net profit and 75.18% of the revenue.
Here Tsingtao positions are among the leading ones as in Shandong province 60% of the production accrue to the company. The company’s products have equally wide representation in Shaanxi (78% of the local beer output) and Shagnhai (70%).
|Revenue||Net profit||Revenue||Net profit|
|Shandong Region||14 136 469 427||1 478 118 811||13 879 320 963||1 211 966 258|
|Huanan Region||4 401 431 421||277 405 568||3 897 629 068||67 857 114|
|Huabei Region||4 185 880 314||494 143 474||4 175 305 898||433 010 603|
|Huadong Region||3 029 370 253||-267 450 996||2 791 751 756||-462 276 846|
|Dongnan Region||2 797 425 636||76 286 842||2 361 332 805||-25 779 599|
|Hong Kong, Macau and other overseas||493 720 960||26 794 316||521 019 539||42 682 094|
|Finance Company||2 725 072||184 801 246||7 090 439||175 741 684|
|Unallocated||2 298 083||-239 565 940||1 235 572||157 522 512|
|Elimination||—||-11 001 254||—||11 319 694|
|Total||29 049 321 166||2 019 532 067||27 634 686 040||1 612 043 514|
|Revenue growth, %||Net profit growth, %|
|Hong Kong, Macau and other overseas||6%||59%|
Such dramatic profit decline of the company on all the country regions could not be compensated by а 5.53% sales growth in Hong Kong, Macau and overseas because their share in Tsingtao net profit is 1.89% only.
31 May. 2016