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.
Analysis of beer market in China
China’s transition to a “new normal” reality backfired on the brewing industry unexpectedly. Stagnation and subsequent market decline resulted from dynamic social and economic changes. There has emerged a “two speed” market where the medium class significance is growing, yet the share of main beer consumers, “blue collar” is decreasing. Also the inflow of consumers is shrinking, as demographics stopped being a growth driver. Finally, beer is giving way to other alcohol drinks....
Tsingtao Profit Falls as China Slowdown Hurts Beer-Drinking
Net income was 1.07 billion yuan ($160 million) in the first half, compared with 1.2 billion yuan a year earlier, according to a statement sent to the Shanghai stock exchange Tuesday. Revenue fell 8.2 percent to 14.7 billion.
Brewers in China are introducing more premium products as they seek to differentiate themselves amid stiff competition for drinkers, and as the country’s slowdown lead to weakening consumption. Sales were further dented this summer, traditionally the peak period for beer-drinking, as China was hit by its worst floods since 1998 and cooler-than-usual weather.
China’s beer market remained under pressure in the first half of 2016 as beer sales were negatively impacted by weak food and beverage consumption and adverse weather, according to the beer maker in its statement on Tuesday. International beer makers are also expanding in China, making competition “more fierce,” the company said.
Tsingtao Brewery shares have slumped 25 percent this year while the benchmark Hang Seng Index rose 5 percent. Its rival, China Resources Beer, has seen its stock rise about 15 percent during the same period.
31 Aug. 2016