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.
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