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.
Asahi, others shortlisted in sale of AB InBev’s east European beers: sources
Anheuser-Busch InBev , maker of Budweiser, Stella Artois and Corona beers, agreed to sell the brands, which include the Czech market leader Pilsner Urquell, to help get clearance from competition regulators for its US$100 billion takeover of SABMiller.
The brands up for sale, which also include the Polish beers Tyskie and Lech, Hungarian beer Dreher, Romania's Ursus and Topvar in Slovakia, are estimated to be worth more than 5 billion euros (US$5.5 billion).
Asahi has already bought SABMiller's Western European brands Peroni and Grolsch and could be interested in expanding its European presence. A source close to one of the other bidders said Asahi continued to be viewed as the favorite given its existing global distribution channels.
"There is a chance (for us) but the favorites are elsewhere," the source said.
Another bidder making it onto the shortlist is the Jacobs-led group, which includes Czech family office R2G and Canadian pension funds manager PSP Investments, said Jakub Dyba, an executive at R2G.
R2G manages the assets of former CGS tyre firm founder Oldrich Slemr and the founders of software firm Avast.
Three sources familiar with the matter said PPF, the investment firm of Czech business tycoon Petr Kellner, also made it to the shortlist. Two of the sources said Asahi was included while one of them said a joint bid by private equity firms Bain Capital and Advent was also through to the next round.
Officials at PPF, Jacobs, Asahi and Advent declined to comment. Bain was not immediately available to comment.
AB InBev received at least six indicative offers last week. Binding offers are due next month.
China Resources also made an initial bid, as did KKR , jointly with specialist regional private equity firm Mid Europa Partners.
Sources familiar with the sale process say the main attraction for all bidders is Pilsner Urquell, which has export potential as well as a 40 percent share of the Czech market, the biggest beer market in the world in terms of per-capita consumption.
14 Nov. 2016