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. Habeco seeks to trade on HoSE in Q4
The number of shareholders able to send written opinions on changing from the Unlisted Public Company (UPCoM) market to HoSE will be finalized on November 17, according to Vietnam Securities Depository (VSD).
Habeco expects to be listed in either November or December. Military Bank Securities Company (MBS) will be its consultant, according to VSD.
The listing occurs in the middle of negotiations that started on October 31 between Danish brewer Carlsberg and Habeco over additional stakes in the Hanoi-based brewer. Negotiations remained ongoing at the time of writing, according to unofficial reports. Neither side was willing to disclose any further information to VET.
Both Habeco and the Saigon Alcohol Beer and Beverage Corporation (Sabeco) have been equitized previously, with the State still holding 81.79 per cent of Habeco, its employees 0.56 per cent, other shareholders 0.88 per cent, and its strategic investor, Carlsberg, 17.08 per cent.
Together with Sabeco, the government is keen to divest from Habeco in 2016-2017. Carlsberg became its strategic shareholder in 2009. On October 28, all 231.8 million Habeco shares were officially traded on UPCoM with a reference price in the first trading session of VND39,000 ($1.74) per share.
Its share price increased drastically in the first five trading days and currently stands at VND109,500 ($4.92), a 181 per cent increase over the reference price. Almost all trading sessions have seen excess demand for the share.
Habeco’s total revenue reached VND9.64 trillion ($432 million) last year and after-tax profit VND951 billion ($42.6 million). Habeco and Sabeco are Vietnam’s two largest beverage producers. Sabeco was the largest beer brewer last year, reporting production of 1.38 billion liters. The No. 2 position was taken from Habeco by Heineken.
Formerly a small brewery founded by a Frenchman named Hommel in 1890, Habeco was acquired by MoIT in 2003. In 1958 the very first bottle of Vietnamese beer was capped, called Truc Bach, marking a major turning point in the country’s brewing industry. Habeco has expanded to 25 wholly-owned subsidiaries in many provinces with famous products including Hanoi draft beer, Hanoi bottled beer, and Hanoi canned beer.
Carlsberg Vietnam comprises two entities: trading and production companies. In 1993 it entered Vietnam via a joint venture called South East Asia Brewery and now owns 100 per cent of the company. In 1994 it acquired 50 per cent of Hue Brewery Limited (HBL), the market leader in central Vietnam. In 2011 HBL became a wholly-owned subsidiary of Carlsberg when the company acquired the remaining 50 per cent.
In 2008 Carlsberg created a joint venture with Habeco in the form of the Hanoi Vung Tau Brewery Company. In 2009 it became a strategic investor in Habeco and in 2014 the Hanoi Vung Tau joint venture was converted into a fully-owned subsidiary of Carlsberg Vietnam.
Carlsberg Vietnam produces and markets Huda and Huda Gold in central Vietnam and Halida in northern Vietnam. The Danish brewer also produces and distributes Turborg and Carlsberg throughout the country. Carlsberg Vietnam currently has three breweries, excluding Habeco sites. It holds a 34 per cent market share and its annual beer consumption per capita stands at 40 liters.
9 Nov. 2016