10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
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.
Vietnam. Ministry guides Sabeco, Habeco to sell shares
Sai Gon Alcohol, Beer and Beverages Corp. (Sabeco) and Hanoi Beer Alcohol and Beverage JSC (Habeco) will complete their divestiture from state funding in the near future.
The steering committee will be headed by MoIT Deputy Minister Cao Quoc Hung and consist of 10 other members from MoIT's authoritative departments and directors of Sabeco and Habeco.
The committee will aid the MoIT minister in governing the sale of shares in Sabeco and Habeco as per entrustment from the prime minister, as well as assist in the construction and implementation of the two companies' divestment from state funding in accordance with legal procedures.
In August, MoIT gave its approval for Sabeco and Habeco to be listed on the appropriate domestic stock exchanges before actually selling shares to interested investors.
Sabeco will be listed on the Ho Chi Minh City Stock Exchange (HOSE), while Habeco will be listed on the market for stocks of unlisted public companies (UPCoM) of the Hanoi Stock Exchange (HNX).
During the government's month meeting on October 4, the chairman of the Government's Office, Minister Mai Tien Dung said: "The Prime Minister had tasked the two businesses with listing on the exchange in 2016. If a delay occurs, the governing body, which is the Ministry of Industry and Trade, will have to take full responsibility."
Nonetheless, according to MoIT Deputy Minister Hoang Quoc Vuong, despite the ministry's effort to accelerate the process, legal procedures could postpone Sabeco's and Habeco's listing until early 2017.
Sabeco expects to divest 53.59 per cent of its charter capital in 2016, equal to US$1.07 billion, and another $716 million in 2017 upon their listing on the stock market. Habeco expects to completely divest its 81.79 per cent of state owned capital valued at $402 million in 2016.
The Vietnam Association of Financial Investors estimated that the government could retrieve up to $2.2 billion from divesting 89.6 per cent of Sabeco's shares and 82 per cent of Habeco's alone.
12 Oct. 2016