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.
Big-drinking Vietnam to wholly divest from its sought after beer assets
The decision seeks to end years of uncertainty and government flip-flopping about how much of unlisted brewers Habeco and Sabeco the state was willing to part with. The stakes will be auctioned and both domestic and international investors can bid.
Vietnam is Asia's third-largest beer drinker by volume after China and Japan, putting it on the radar of Asian and European brewers keen to exploit changing lifestyles and one of the region's fastest rates of middle-class growth.
Deputy industry and trade minister, Do Thang Hai, said divestment in Habeco, the maker of Bia Ha Noi beer, would be completed within this year and the selloff of shares in bigger rival Sabeco, which brews Bia Saigon and 333 beers, would be finished after the firm lists in 2017.
"All domestic and foreign investors, regardless of their economic structure or sector, can join the bidding," Hai was quoted as saying by the government's news website.
The government owns 81.79 percent of Hanoi-based Habeco and Hai said it would sell 5.77 percent of the firm to Danish brewer Carlsberg, its strategic investor, which currently holds a 15.77 percent stake, while the remaining stake would be auctioned. The aim was to raise 9 trillion dong ($404 million) in total.
Top brewer Sabeco has courted most interest from big brewers, among them ThaiBev, the flagship company of Bangkok's billionaire beer magnate Charoen Sirivadhanabhakdi, who has been making major inroads into Vietnam through investments in dairy, logistics, hotels and retail.
His biggest rival, Boon Rawd Brewery, maker of Singha beer, is expected to enter the Vietnam market via Masan Group, a firm best known for making fish and chilli sauce, after it agreed a $1.1 billion strategic deal in December that included creating a Masan beer subsidiary.
Beer is the top drink in Vietnam, popular both during the daytime and at night, often in large beer gardens. Consumption last year rose 12 percent from 2014 to 3.4 billion litres, enough to fill over 1,300 Olympic-sized swimming pools.
"Investors are very interested in this news due to upbeat performance of Sabeco while local brewery market is still seeing strong growth," said Le Ha, analyst at Vietcombank Securities.
Deputy minister Hai said of the government's nearly 90 percent stake in Sabeco, 53.59 percent will be sold this year to raise 24 trillion dong. The remaining 36 percent would go on sale for 16 trillion dong in 2017 when it lists on a stock market, some eight years after its initial public offering. ($1=22,300 dong)
1 Sep. 2016