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. ThaiBev downplays Saigon Beer rumours
"Our financial status is quite strong," said executive vice-president Sithichai Chaikriangkrai. "If we get an interesting deal, we can move forward to finalise it in a short period of time with many financial tools."
ThaiBev has been mentioned by Euromonitor as one of three companies showing an interest in buying a major stake in Saigon Beer Alcohol Beverage Corporation.
The Vietnamese government wants to divest of its 89.59% stake in Saigon Beer for UScopy.8 billion in auctions this year and next, along with its 82% stake in Hanoi Beer Alcohol and Beverage Corporation for $404 million, according to a state-run news website.
Mr Sithichai refused to confirm whether ThaiBev is interested in Saigon Beer.
"ThaiBev's management will consider acquisition opportunities to diversify its revenue sources and capitalise on growth opportunities in the Asean region," he said. "It wants to be a top-five beverage company in Asia by 2020."
Fitch Ratings assigned ThaiBev an initial long-term issuer default rating of BBB and a national long-term rating of AA+ with a stable outlook.
The company's ratings were given based on ThaiBev's strength as the leading drinks company in Thailand with a solid distribution network.
ThaiBev has a variety of home-grown and imported products. Its financial strength and credit rating incorporate a prudent approach to leverage and a commitment to an investment-grade profile.
Some 95% of revenue comes from local sales and 5% from overseas; 87% comes from alcoholic products and 13% from non-alcoholic.
ThaiBev directly holds a 28% stake in Fraser and Neave of Singapore.
Under the 2020 Vision plan, ThaiBev's sales will reach 300 billion baht and the contributions from alcoholic and non-alcoholic products will be 50:50.
5 Sep. 2016