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....
Thai Beverage Public Company Limited Joins In The Race To Capture Vietnam’s Beer Market
According to a news report, the government of Vietnam is planning to sell its 89.59% stake in the country’s largest brewery, Saigon Beer Alcohol Beverage Corp (Sabeco). Sabeco is estimated to own about 40% of the local beer market. The deal could be worth up to US$1.8 billion and Thai Beverage has signed up as a bidder for the auction.
Beer consumption in Vietnam is growing fast, having grown 40% from 2010 to 2015. It is also expected to be the largest beer market in the region, with about 68.7 million people in the country above the drinking age.
Therefore, this means that interest for Sabeco are not lacking. Other interested bidders for the stake includes major breweries such as Asahi Group, Heineken NV, Anheuser-Busch InBev, Kirin Holdings and even Thai Beverage’s main competitor, Boon Rawd Brewery.
Thai Beverage has also indicated that it has strong enough financials to fund future acquisitions. The company has a total debt to equity of 34.4% and an interest coverage ratio of 22.4 times based on its latest result.
It is too early to know if Thai Beverage has a chance to win the bid for Sabeco. But given the strong competition in the auction, it seems the race is on to be the beer giant of Southeast Asia. Vietnam is the crown jewel of the industry in this region.
9 Sep. 2016