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. Vijay Mallya may step down as United Breweries chairman
According to the 2009 shareholder agreement between Mallya and Heineken, the former has the right to choose his successor. While Mallya has been vocal about his intention to repay dues to banks, he will be unable to challenge the wilful defaulter tag as of now. "Yes, this definitely debars Mallya as chairman. We will obviously have to discuss this and Heineken will discuss this with Mallya as a shareholder," said a UB director. "Some of our board members are travelling, so we will take a call as soon as possible.
This also means Mallya would have to step down as chairman of Bayer BSE -0.92 % CropScience, which is said to have identified a successor in anticipation of the development, said executives aware of the matter. Banks are seeking more than Rs 9,000 crore in dues stemming from loans made to Kingfisher Airlines BSE 3.03 %, which Mallya founded. Mallya is seeking to settle with the banks and has denied allegations of wrongdoing. State Bank of India had continued to lend to UB until recently although it had termed Mallya a wilful defaulter. According to Reserve Bank of India guidelines, banks can't lend to companies with willful defaulters on their boards. SBI had done so on the grounds that UB hadn't defaulted on any loans, executives said.
The notification by the Securities and Exchange Board of India ( Sebi ) empowers board members who could otherwise find it hard to ask high-profile chairmen to step down, said Shriram Subramanian, founder of InGovern, a proxy advisory firm. It will be up to Heineken to take the next step and work with Mallya on succession, he said.
Heineken declined to comment. Some of UB's independent board members couldn't be reached. There was no response to an email sent to Mallya. At UB's last board meeting, Heineken and the board had decided to support Mallya as chairman after he addressed their concerns and reassured them that he was in negotiations to repay the bank loans. Independent board members had told et that the company had done well and there was no corporate governance issue that had impacted the company owing to Mallya's troubles. The current agreement between Mallya and Heineken envisages that he or his nominee will be chairman. Both sides have three directors each on the board. Since 2009, when both sides owned 37.5% each, Heineken's stake has risen to 42.4% and that of Mallya has dropped to 32%. According to an informal understanding between Mallya and Heineken, the latter has first right of refusal if Mallya sells shares.
31 May. 2016