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.
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