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....
Vietnam. The government delays Sabeco shares sale, while the company’s profits fell by 27% in four month of 2016
According to economists’ view this footdragging is caused by the state’s intention to profit from such a large business.
However, in case of further delaying of open auction for Sabeco share sale, there is a risk that the deal will yield much less money than expected.
The point is that in 2016 is thought to be very difficult for Sabeco. For one thing, a considerable tax pressure is experienced due to the higher excise as it has been increased to 55% this year. For another thing, the competition over the market is growing ever fiercer, especially from the transnational companies such as AB InBev. Decreasing import duty to 0% for beer is making the risks of Vietnamese brewers on the domestic market significantly higher. At the same time, the export potential of the local beer is far from being strong.
Besides, such factors as fluctuations of the exchange rate leading to price of import raw materials as well as joining Trans-Pacific Partnership Agreement and FTA are also fraught with dangers for the brewing business of Vietnam.
This year, the company is planning to heighten the level of beer realization and to increase the revenue by 4% against 2015, though expecting the profit after tax fall by 5%.
After 4 months of 2016, Sabeco’s turnover is estimated at 10.494 billion dong which is 17% up versus the same index last year. Yet, the company’s profit over this period fell by 27% to 1.215 billion dong.
7 Jun. 2016