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. United Breweries Q1 net rises 20% on higher sales and lower costs
United Breweries Ltd on Saturday said its net profit for the June quarter rose 20.4% from a year ago due to higher sales and lower costs.
Net profit for the quarter rose to Rs.147.06 crore against Rs.122.14 crore a year ago.
Net sales rose 8.6% to Rs.1,485.67 crore from Rs.1,368.03 crore during the same period last year.
The company made double-digit growth in eastern and southern markets at 18% and 13%, respectively, while northern and western parts were marginally under pressure, the company said. The volume growth for the quarter was at 6%.
“Growth in the east was realized in West Bengal, Odisha and Jharkhand, while in Bihar it made nil sales due to ban on liquor. In the south, volume growth was driven by sales in Andhra Pradesh, Telangana and Kerala, while in north it made modest growth in Delhi, Haryana and Uttar Pradesh”, the company said in a notice to the BSE.
For the quarter, gross margin grew by 7%, while earnings before interest, tax, depreciation and amortization (EBITDA) grew by 15%, it added.
On Friday, United Breweries Ltd ended at Rs.789.05 on the BSE, down 4.1% from the previous close, while the benchmark index Sensex rose 1.05% to close at 28152.40 points.
15 Aug. 2016