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....
Asian brewers, KKR-led investors vying for East Europe beer brands-sources
Asian brewers Asahi Group and China Resources and a consortium of KKR and Mid Europa Partners are among several parties preparing bids for a group of beer brands being sold by Anheuser-Busch InBev, sources familiar with the matter said on Thursday.
The brands, which include Pilsner Urquell in Czech Republic and Tyskie and Lech in Poland, are worth more than 5 billion euros ($5.5 billion). They were offered for sale earlier this month as part of AB InBev's $100 billion-plus takeover of SABMiller, which recently closed.
The portfolio has also drawn interest from private equity firm Advent International, which in March raised a $13 billion fund, the sources said, speaking on condition of anonymity.
Other parties looking at the assets but wanting to participate in a joint bid include U.S. buyout firm Bain Capital, Swiss investment firm Jacobs Holdings and London-based private equity house BC Partners, the sources said, as well as local investors.
Polish billionaire Sebastian Kulczyk told Reuters earlier this month that he may look to use some of the proceeds after the sale of his stake in SABMiller to buy the divested assets.
Polish juice maker Maspex has also expressed interest in the brands and is seeking other investors to contribute to a bid, the sources said.
AB InBev recently invited a host of parties to the auction, led by Lazard, the sources said, adding that the world's largest brewer wants indicative offers in early November, hoping to nail down a buyer by Christmas, the sources said.
They described Asahi as the most motivated buyer, since it wants to build on its purchase of Peroni and Grolsch, SABMiller's former brands in western Europe.
But state-owned China Resources, which bought out the Chinese joint venture with SABMiller, is also keen to submit a competitive bid, they said, and is holding talks with potential partners including Chinese investment firms.
The portfolio, which also includes beer brands in Hungary, Romania and Slovakia, may fit into the new strategy of Hungarian oil and gas group Mol, which said last week that it wanted to diversify into new business areas including consumer goods, three of the sources said.
Officials for AB InBev, KKR, Advent, Bain, BC Partners and Mol declined to comment. Asahi, China Resources, Mid Europa and Jacobs could not be reached outside of normal working hours.
21 Oct. 2016