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.
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.
India. Heineken plea for ‘first right’ on United Breweries share sale dismissed
Heineken NV’s attempt to increase its stake in United Breweries Ltd (UBL) fizzled out on Saturday as the Debt Recovery Tribunal (DRT) dismissed the application by Dutch beer maker which had sought ‘first right’ on any sale of seized shares.
Heineken, which has 43% stake in UBL-filed an Interlocutory Application (IA) on 18 June seeking to implead itself in the original application (OA) filed by a consortium of banks seeking led by State Bank of India to recover over Rs.9,000 crore dues from embattled liquor baron Vijay Mallya’s grounded Kingfisher Airlines Ltd (KFA).
In its order on Saturday, the tribunal said that Heineken’s claims for first right of refusal cannot be taken up for consideration at this point as the liabilities of the main defendants including United Breweries Holdings Ltd (UBHL), Mallya and KFA among others itself has not been adjudicated.
Heineken was interested in 20.9 million shares of UBL valued at around Rs.1,500 crore.
More importantly, the shares account for around 7% of the company, according to one person familiar with the developments.
This would essentially taken Heineken’s total to 50% in UBL.
The developments come at a time when there is speculation that Heineken will also seek the removal of Mallya as chairman of UBL.
Heineken acquired a 37.5% stake in UBL in 2008 through its takeover of Scottish & Newcastle and has since increased its holding to 42.4% and periodically increasing its share in one of the fastest growing beer markets globally.
On 24 March, Heineken confirmed that it had acquired 21.15 lakh shares of UBL taking its total shareholding from 42.2% to 43%.
Heineken cannot buy shares of UBL from the market according to an agreement between them and Mallya, said the person cited above on the condition of anonymity.
18 Jul. 2016