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. Asahi Europe appoints head of legal from SABMiller as brewing deal finalises
Japanese beer giant Asahi made a €2.55bn bid to acquire SABMiller's brands such as Peroni and Grolsch in February as SABMiller completes its mega-merger with Anheuser-Busch InBev (AB InBev).
Newly-appointed Perks has one direct report, a legal counsel working alongside him, and works closely with the existing legal teams for Peroni and Grolsh. He had been at SABMiller for more than four years, joining from Hogan Lovells.
Only a month after the acquisition was finalised, Perks is yet to choose the company's lead advisers but Allen & Overy remains a preferred choice. The Magic Circle firm advised Asahi on the SABMiller divestment, is its largest acquisition to date, with a team led by corporate partner Richard Hough. London employment partner Sarah Henchoz, banking partner Trevor Borthwick, transitional services partner Jim Ford, antitrust partner Alasdair Balfour and tax partner Lydia Challen also worked on the deal.
Perks told Legal Business: 'This is a really exciting opportunity to be involved in a company that's a mixture of a start-up with fantastic brands and assets being brought together. We're setting up and doing things for the first time. There's a huge amount of energy here, particularly on the back of a very lengthy divestment process.'
Perks' move comes as it was revealed SABMiller's general counsel John Davidson will stand down when the merger is complete, following a review by AB InBev with up to 35 staff in the UK-based legal team to be made redundant.
Those affected include company secretary and deputy GC Stephen Shapiro, who is responsible for managing the internal commercial legal function; deputy GC for M&A, Stephen Jones; and deputy GC for regulatory and industry affairs, John Fraser, who devises and implements global regulatory strategies for the company.
2 Nov. 2016