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.
Vietnam government may withdraw all capital from Sabeco, Habeco
Speaking at a conference reviewing operations and results in the first half of 2016 of the MOIT and its subsidiaries on Tuesday, July 12, Minister Tran Tuan Anh said that the Saigon Beverage Corporation (Sabeco) and Hanoi Beverage Corporation (Habeco) were building a plan on the entire divestment of state capital.
"The divestment will be carried out on the principle that the state holds less than 50% of charter capital or no capital at all,"Minister Tuan Anh said.
The MOIT will assess the state divestment plan and implement it under the direction of Prime Minister Nguyen Xuan on the further sale of state stakes in the two giant beverage corporations.
The sales of state stakes in Sabeco and Habeco has been a hot issue since the Vietnam Association of Financial Investors (VAFI) sent an official letter to the Minister of Industry and Trade and the Managing Boards of Sabeco and Habeco to urge withdrawal of entire state capital from the corporations and the listing of these firms’ shares on the stock market.
In mid-2015, the MOIT submitted a report to the Government on the sale of the state's stake in Sabeco, with two plans: (1) reduce the state ownership from 89.59% to 36% once through public auction and (2) sell the state's stake in Sabeco twice, with 40% the first time and 13.59% the second time.
Many Vietnamese and foreign investors expressed their interest in becoming a strategic shareholder of Sabeco.
The MOIT then proposed to implement the plan 1.
At the 2016 shareholders’ meeting of Sabeco, held on May 27, Sabeco Chairman Vu Thanh Ha said Sabeco leaders were well aware that the sale of state stakes at Sabeco would help the corporation have capital and improve its operational efficiency.
This proposal is currently being considered by the Ministry of Planning and Investment and the Ministry of Finance.
Sabeco is the biggest Vietnamese beer maker, with a 46 percent market share, equivalent to 1.3 billion litres. Habeco is the second largest, with 637 million litres, according to the Euromonitor's market report in 2014.
Sabeco is holding 100 percent of charter capital in three member businesses and long-term investments in 19 associated companies. It reported total sales of nearly VND29.8 trillion ($1.4 billion) and a pre-tax profit of VND3.672 trillion ($171.6 million) by the end of 2014.
Vietnam's beer market has attracted more foreign investors, thanks to its growth prospects. Vietnamese people spent at least $3.1 billion on beer and consumed 3.14 billion litres in 2014, excluding imported beer.
15 Jul. 2016