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’s top brewer Sabeco cleared for share listing by Dec
Phan Dang Tuat, head of the Industry and Trade Ministry's enterprise renovation and development committee, told Reuters on Tuesday that Hanoi had granted approval to list shares in a firm it first earmarked for privatisation in 2008 on the Ho Chi Minh Stock Exchange.
Known for its Bia Saigon and 333 brews, Ho Chi Minh City-based Sabeco - formally known as the Saigon Beer, Alcohol, Beverage Corp - is valued at about $2 billion by Hanoi. With 45 percent of Vietnam's beer market, its net profit jumped 27 percent in first-half 2016 to 2.39 trillion dong ($107 million).
"(Sabeco) has 10 to 12 weeks to debut, depending on the consultative contract," Tuat said, referring to Sabeco's plans to hire a consultant firm to advise on the listing. He didn't say how much of the company will be sold in the December listing plan.
The company has received expressions of interest from major foreign brewers lured by the size of the Vietnamese market, including ThaiBev, the flagship company of Bangkok's billionaire beer magnate Charoen Sirivadhanabhakdi. Sabeco sold 1.52 billion litres of beer last year, up 9 percent from 2014.
But potential partners keen to tap rising consumer spending by Vietnam's fast-growing middle class have faced repeated delays in the privatisation process. Under criticism from some investors for being slow to privatise assets, the government had said in August it would fully divest from the country's two biggest brewers, Sabeco and Habeco.
That would include selling its 89.59 percent stake in Sabeco worth $1.8 billion, by the end of 2017.
The government has also said divestment in Habeco, the maker of Bia Ha Noi beer ranked third by market share after Sabeco and Dutch brewer Heineken NV, would be completed by the end of this year.
Officials at Sabeco weren't immediately available for comment.
27 Sep. 2016