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....
Vietnam. Habeco sees revenue fall despite Obama visit
Analysts then predicted that the move by the most powerful man in the world would help Habeco beer sell like hotcakes. But the company has unexpectedly reported decreased revenue in the first six months of the year.
The audited financial report showed that revenue from sales and services in the first half of the year was VND4.049 trillion, a decrease of VND610 billion, or 13 percent, compared with the same period last year.
Habeco’s revenue still fell considerably despite branding campaigns. The brewery reportedly allocated avbig budget for sales and advertisements.
In the first six months of the year, it spent VND110 billion on ads and promotion campaigns, an increase of VND32.6 billion, or 42 percent, compared with the same period of last year. The spending was the main reason behind Habeco’s higher sales cost, about VND464 billion.
The higher sales cost and lower sales have led to Habeco’s profit decrease. Its post-tax profit in the first six months of the year was VND320 billion, down by VND220 billion, or 41 percent compared with 2015’s first six months.
The corporate management cost increased from VND182 billion to VND226 billion.
Financial experts, after analyzing Habeco’s financial report, have pointed out a problem that even though Habeco’s has big amounts of cash, it still had to borrow money from banks.
The company’s total debts reached VND1.24 trillion by the end of the first half of the year, accounting for 53.5 percent of stockholder equity.
Habeco’s biggest creditor is VIB Bank which lent VND356.6 billion. The other lenders include Vietcombank (VND244 billion) and Standard Chartered VND179 billion.
With the loans, Habeco had to pay VND37 billion in interest in the first half of the year.
The State Audit has released a decision forcing Habeco to pay tax arrears of VND920 billion in luxury tax.
Habeco has sent a petition to the Ministry of Industry and Trade, saying that the decision is unreasonable.
After Obama had dinner at Huong Lien bun cha Shop and drank Bia Ha Noi on May 23, the first day of his visit to Vietnam, both brands appeared many times on mass media. Bia Ha Noi was even mentioned in Obama’s speech the next morning.
16 Sep. 2016