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.
India. AB InBev appoints Pedro Aidar as its Business Unit India president
World's largest brewing company Anheuser-Busch InBev has appointed Pedro Aidar as the president for business unit that includes India and other south Asian countries. The development follows the Belgian-Brazilian beverage giant's acquisition of SABMiller Plc with proposed plans to restructure management team and make key appointments for the combined group globally.
Aidar has been with maker of Budweiser and Corona beer for over 15 years and previously held the position of vice president - finance for APAC region based out of Shanghai, after which he moved to India last year.
"The combination of SABMiller and AB InBev businesses in India is extremely complementary, resulting in a portfolio of local and global brands spanning the different segments of the local beer market. The beverage industry in India represents a fantastic business opportunity and I am personally very excited about the prospects of our new combined group", Aidar said.
The new business unit India would be headquartered in Bangalore and reporting into Jan Craps, Zone President for Asia Pacific South, based out of Melbourne, Australia.
AB InBev and SABMiller expect to close the $100 billion-plus merger on Oct 10 to create a global beer giant with more than 400 brands and a more than a quarter of the world's beer market share.
Within India AB InBev has been a fringe player in the market where leader United Breweries controls about half the beer market with 51% share while SabMiller that sell brands such as Haywards and Knockout has 23% share followed by Carlsberg that controls nearly 15% of the market. Just over a year ago, the company parted ways with its New Delhi-based joint venture partner RJ Corp to operate a wholly owned subsidiary - Crown Beers India.
The Indian operations now have a team of over 325 people with flagship brand Budweiser brewed locally out of two manufacturing locations in Telangana and Maharashtra. The portfolio in India also includes imported international brands such as Stella Artois, Leffe, Corona and Hoegaarden, which are mainly restricted in the premium end beer in a country where mass and strong beer segment dominate nearly 80% of the overall segment.
12 Sep. 2016