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.
Japan. Kirin Holdings to Take 20% Stake in Brooklyn Brewery
The investment will give Kirin a roughly 20% interest in Brooklyn Brewery, the U.S.’s 12th-largest craft brewer by volume, the people said.
With the investment, Kirin joins a host of Japanese companies that are using acquisitions to expand beyond traditional markets. Rival Asahi Group Holdings Ltd., on Tuesday closed a $3.5 billion acquisition of several former SABMiller brands, including Peroni and Grolsch.
Brooklyn Brewery, based in the borough’s neighborhood of Williamsburg, is one of the most established independent brewers in the U.S. It dates its history to the late 1980s, and growth has accelerated in recent years as the borough where it was born has gained prominence and cultural influence world-wide.
The brewery produced 277,000 barrels of beer last year, up from 169,000 barrels produced in 2010, according to industry tracker Beer Marketer’s Insights.
Financial terms of the Kirin investment weren’t immediately available.
Brooklyn Brewery is one of the few American craft brewers that has worked to build an international business. It has been shipping its beer to Japan since 2003 and has a sizable business in Scandinavia. In 2014, the brewery and Carlsberg A/S opened a joint venture brewery in Stockholm. It struck an agreement earlier this year for a similar partnership in Japan with Kirin.
Kirin’s investment in the growing U.S. craft beer market comes amid a prolonged downturn in Japanese beer sales. Shipments of beer and related brews fell to about 425 million cases in 2015, compared with a peak of 573 million cases in 1994, according to the Brewers Association of Japan.
The investment will help Brooklyn Brewery as it gears up for a major expansion. The company this year signed a 40-year lease for 75,000 square feet at Brooklyn’s Navy Yard where it plans to have offices, a beer garden and brewery operations. It also is planning an expansion site in Staten Island to increase beer production.
The U.S. craft beer market has slowed lately, decreasing to 8% growth in the first half of 2016 after six years of double-digit growth. Large craft brewers like Sierra Nevada and Boston Beer Co., which makes Samuel Adams Boston Lager, have seen volumes decline as more small breweries open across the country.
12 Oct. 2016