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.
Vietnam’s largest brewer Sabeco mulls listing on southern bourse
“The ministry has reported to the government about its privatization plan for Sabeco four times since 2012, and the overall goal is to list the company’s stocks as the state capital is divested,” the Ministry of Industry and Trade said in a response to the Vietnam Association of Financial Investors, which favours state exit from commercial businesses.
“The ministry acknowledges that the delay in listing has disappointed investors. Therefore, it will ask the government for consideration of listing on the Ho Chi Minh City Stock Exchange,” it added. VAFI had earlier urged the government to accelerate the divestment in Vietnam’s two biggest beer firms, Sabeco and its Hanoi-based peer Habeco. Accordingly, the association expects the industry ministry, which represents the state holdings in these two enterprises, to act swiftly in selling significant stakes from almost 90 per cent (in Sabeco) and 82 per cent (in Habeco), to minority holdings.
The local government had indicated that it would bring down state ownership in a single tranche to 36 per cent in a move that would value the company at over $2 billion. This led to a lot of interest from international beverage companies in the state-owned firm.
A group of foreign bidders including Thai firms Thai Beverage and Singha Corp, along with US and Japanese brewers, had expressed keenness to pick a major stake in Sabeco.
However, Sabeco’s executives then said the company preferred domestic buyers given that several local businesses such as Saigon Securities Inc and Lien Viet Group had submitted bids.
VAFI’s general secretary Nguyen Hoang Hai opines that it does not matter if the buyer of Sabeco’s 53 per cent equity is a domestic or overseas company as long as sale process was transparent. In addition, it is important for Sabeco to have better corporate management, the association spokesman added.
Sabeco launched its IPO in 2008 and, since then, Heineken is the only major foreign shareholder with 5 per cent interest.
Sabeco is the largest producer of beer and beverage products in Vietnam, which has reported 3.4 billion litres of beer consumption in 2015. Habeco, the second largest player, reportedly has a market share of more than 17 per cent.
16 Aug. 2016