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....
ThaiBev is sticking with its beer segment for the long term
The beverage firm has had great success with its non-alcoholic beverage (NAB) segment, but its definitely won’t be moving away from its evergreen beer segment.
According to a report by OCBC research, volume and net profit has improved significantly, a testament to the success of its new marketing strategy for Chang Beer.
Additionally, OCBC research noted that Thai Beverage also continues to dominate the domestic spirits market with an 82% volume share.
“But due to the maturity of the industry, we expect ~1% revenue growth here and believe that the beer segment will help to drive growth in the coming years,” OCBC research added.
Further, its NAB segment could also narrow its losses this year, but high SG&A expenses would still have to be incurred whenever new products are launched.
17 Jun. 2016