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.
Competition watchdog clears Heineken acquisition of Singapore beer firm
GAPL holds the licences for the ABC Extra Stout, Guinness Draught and Guinness Foreign Extra Stout brands in Singapore. The company is registered here but listed in Malaysia.
The deal would see Heineken acquiring the entire issued and outstanding ordinary share capital of GAPL through its subsidiary Heineken Asia Pacific.
“CCS has assessed that the transaction has not substantially lessened competition in the supply of beers in Singapore, which includes ale, lager and stouts,” the watchdog said.
The production and distribution of the beer brands would not be affected, CCS added. “In particular, the distribution of ABC Extra Stout and Guinness Stout in Singapore was, before and after the transaction, still undertaken by Asia Pacific Breweries Singapore, which is a wholly-owned subsidiary within the Heineken Group.”
As such, the acquisition has not changed the “relative bargaining power” between Heineken and its customers that would allow the brewer to raise prices or impose exclusivities, the watchdog said.
CCS said it issued its clearance decision on Jun 30, after reviewing Heineken’s submissions and feedback from customers and competitors during a public consultation held from Nov 17 to 27 last year.
19 Jul. 2016