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. 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