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.
Sri Lanka. No 100 percent tax waivers given to Beer Company: Finance Ministry
In a statement the ministry said a beer manufacturing company in the country which was fully affected by the recent flood has been provided the opportunity to import beer with taxes and other levies applicable to that of locally produced beer.
Full statement is reproduced below.
A Beer manufacturing company in the country which was fully affected by the recent flood has been provided the opportunity to import beer with taxes and other levies applicable to that of locally produced beer. There is no truth in the reports that was spread that this manufacturing company has been given concession for imports which would making a revenue loss of Rs 6 billion to the state.
The manufacturing plant and machineries of the M/s Lion Brewery Company at Biyagama was completely damaged due to the recent flood in the area. This company which pays excise and other levies of over Rs 25 billion annually to the government had made a request to the treasury for a tax concession for up to a period of three months until the new plant and machineries are installed for it to commence its normal production.
This company was manufacturing beer locally which was subject to an excise duty of Rs 190 per litre for alcohol volume less than 5 percent and Rs 315 per litre for alcohol volume more than 5 percent. Their annual production exceeds 106 million litre and the amount of taxes paid to the Treasury in 2015 was Rs 25.7 billion.
Since their manufacturing plant was fully destroyed they were unable to manufacture beer locally and they could not afford to import and sell the goods at the current market price given the fact that the import duties alone exceed the market price. The company had made a request for a waiver on excise duty and other levies to import consignment required for a period of three months. As of now the all inclusive levies for import of Beer exceeds Rs 700 per litre in addition to CIF cost of Rs 100 per litre. Accordingly, the import cost will exceed the market price compelling the company to give up the production. This will also make revenue loss to the government to the tune of over Rs 5 billion within the period of three months if the company is unable to maintain its market share.
Therefore considering all these facets the government in order to match the market price, permitted the company to import beer, required for a period of three months and impose taxes and other levies equal to that of locally manufactured beer at the point of importation instead of import taxes and other levies. Therefore there is no truth in the news to the effect that the company has been given import concessions and a loss of revenue incurred to the government.
5 Oct. 2016