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.
San Miguel Brewery Hong Kong posted results for first fiscal quarter 2016
‘Our Hong Kong operations posted a strong recovery in the first half of 2016, as operating losses before net finance costs were reduced by 75 per cent, with total sales volumes growing by 5 per cent,’ noted the company in its filing.
Improvements in loss were noted as due to ‘closer monitoring of discounts, reduction in the cost of delivery through process reengineering, and the consolidation of warehouse operations’.
The group’s Macau operations also recorded better-than-expected results.
‘The company was able to buck the industry trend in Macau,’ notes the filing. This was due largely to sales volume growth of 4 per cent ‘through increased participation in on-premise outlets’.
Sales in the surrounding region saw declines, as noted in the Guangzhou subsidiary of the company, which saw a decline as ‘the beer industry in South China contracted,’ notes the filing.
However, the launch of new brands in the past two years, namely San Miguel Cerveza Negra and Red Horse Beer, ‘have been well received by the market’ in Hong Kong, notes the filing. Both the Negra and Red Horse brands have seen 38 per cent and 93 per cent volume growth year-on-year for the HKSAR.
‘We remain optimistic about our performance in the next six months,’ notes the filing. ‘We are confident that the plans and programmes we have put in place will ensure we put the right products in the right markets’.
7 Sep. 2016