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.
Eight years after its IPO, Vietnamese state-owned brewer Sabeco takes a step towards listing
State-owned Sabeco has filed documents seeking approval from the Ministry of Industry and Trade to join the VN index, Phan Dang Tuat, head of the ministry’s enterprise renovation and development committee, told Reuters.
The company held an IPO in 2008, which in Vietnam is a separate process to stock listing.
The Saigon Beer, Alcohol, Beverage Corporation, as Sabeco is formally known, is valued by the government at $2 billion.
As the biggest brewer in Vietnam, Asia’s third-largest beer market after China and Japan, it has long been on the radar of Asian and European beer giants.
Tuat did not give any further information, such as a timeframe for the listing. The listing process usually takes about two months for local bourses.
The government, which has come under criticism from some investors for the slow pace of privatisations, said last month it would fully divest from its two biggest brewers, Sabeco and Habeco. That would include selling a 89.59 percent stake in Sabeco worth $1.8 billion, by the end of 2017.
The government wants to list Sabeco before selling 53.59 percent this year and the rest in 2017.
Sabeco has received interest from several major foreign brewers since the government earmarked it for privatisation, but potential partners keen to exploit changing lifestyles and a fast-growing middle class have faced repeated delays.
ThaiBev, the flagship company of Bangkok’s billionaire beer magnate Charoen Sirivadhanabhakdi, is among the potential suitors for a stake in Sabeco and has interests in Vietnam that include dairy, logistics, hotels and retail.
His rival, Boon Rawd Brewery, maker of Singha beer, is expected to gain a foothold in the Vietnam market via consumer goods firm Masan Group, after it agreed a $1.1 billion deal in December that included creating a Masan beer subsidiary.
16 Sep. 2016