10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
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.
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