The beer market dynamics in Russia is approaching zero, yet major brewers are divided into those who developed considerably in 2017 and those who considerably reduced their volumes. For instance, company Efes has managed to substantially extend their sales due to restrained pricing policy and activity in the modern trade. Heineken has also demonstrated an excellent performance promoted by significant increase of advertisement budgets launching a non-alcohol sort of the title brand and unusual activity in the economy market segment. Carlsberg and AB InBev have been focusing on margins and lost a market share of their inexpensive brands. Serious dependence on PET package and mass enthusiasm about Zhigulevskoe have negatively impacted the most of big regional brewers, that have been for the first time pressed by the leaders in the key sales channels, especially in Volga and Central regions. In the small business there has been a noticeable slowdown in appearing of new restaurant breweries, yet the number of craft breweries has been growing rapidly. In 2018, the beer market is likely to grow a little, while the share of AB InBev Efes may decrease due to the integration. ...
“Catalogue of Russian Beer Producers 2018” includes 1070 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft microbreweries.The catalogue includes 32 large breweries, 75 regional breweries, 693 industrial mini- and microbreweries as well as 270 restaurant breweries. ...
Global hop marketA local alternative to mass beer suggested by independent brewers has been successful and is now altering the global market. Beer is becoming more diversified, so transnational companies have to accept the new game rules and to switch focus to young and fast growing markets. All these processes increased the demand for aroma and bitter hop as well as their acreage expansion on two continents. However now there appeared a downward trend of alcohol consumption in the world, so even special sorts can soon turn to be sufficient. In this connection the dynamic American hop market is already facing some problems. EU hop producers have become more cautious, they are not racing to exceed the demand and look forward with more confidence, judging by the contract terms.
Hop Market in RussiaGermany still dominates the Russian market, yet over the recent two years one has been able observe a continuous success of Czech hop suppliers. Their expansion and growing popularity of hops from the United States became the drivers of supplies growth in 2016 despite the preceding modest harvest crop in the EU, as well as the factor of relative stability in 2017. In this connection, in 2017, the ratio of the varieties continued to shift towards the aroma ones, and the supplies of Magnum hop and other alpha varieties were reduced. However, the import of bitter hop pellets is partially replaced by extracts, especially from the major beer manufacturers. Total volumes of alpha acid supplies, according to our estimation, decreased by approximately 5% and returned to the level of 2015. Barth Haas Group continues dominating the hop products market; HVG also increased its weight. At the same time, Morris Hanbury significantly reduced the supplies in 2017.
Vietnam. Why are investors attracted to Sabeco?
It is the largest brewery in the Vietnamese market, dominating the middle-class beer market segment.
Sabeco has been a joint stock company for eight years, after equitization. However, the state now still holds 89.95 percent of shares, while Heineken holds 5 percent.
Therefore, the joint stock company, by nature, is still a state-owned enterprise. The chairs of the company’s board of directors and other key positions are appointed by the Ministry of Industry and Trade (MOIT).
Sabeco’s managers suggested selling stakes in two campaigns, about 20-30 percent of stakes each. The second campaign will come one year after the first.
Meanwhile, MOIT has recently submitted to the government the plan to sell Sabeco stakes, to reduce the state’s ownership ratio from 89.59 percent to 36 percent.
This means that the new investors will have opportunities to hold controlling stakes in the company.
However, to many people’s surprise, the plan to withdraw the state’s capital and list shares on the bourse was not put into discussion at Sabeco’s shareholders’ meeting held on May 27.
Answering shareholders, Vo Thanh Ha, chair of Sabeco, said Sabeco could not make a decision on the issue and only the state can determine the capital withdrawal process and how much to sell.
As such, Sabeco still does not intend to list its shares, while investors have become impatient. Since equitization, Sabeco has changed its chair of the board of directors twice, but has not fulfilled the promise to list shares.
Some sources said Sabeco doesn’t want to list shares on the bourse at this moment because the brewery fears it may be swallowed by foreign investors. The drink market is a fertile soil which brought VND3-4.5 trillion worth of pre-tax profit every year in the last five years. Its major task in the immediate time is to preserve its strong brand.
Commenting about Sabeco’s value, the Vietnam Association of Financial Investors (VAFI) said 10 years ago, Sabeco, the nation’s leading brewery, was much larger than Vinamilk, the nation’s leading dairy producer with its profit double that of Vinamilk. But nowadays, Vinamilk’s profit is three times higher than Sabeco.
Sabeco’s financial report showed that in 2015, the holding company could create VND8 trillion worth of revenue, or 30 percent of Sabeco’s total revenue, while the remaining was brought by associated businesses and joint ventures.
1 Jun. 2016