The beer market dynamics in Russia is approaching zero, yet major brewers are divided into those who developed considerably in 2017 and those who considerably reduced their volumes. For instance, company Efes has managed to substantially extend their sales due to restrained pricing policy and activity in the modern trade. Heineken has also demonstrated an excellent performance promoted by significant increase of advertisement budgets launching a non-alcohol sort of the title brand and unusual activity in the economy market segment. Carlsberg and AB InBev have been focusing on margins and lost a market share of their inexpensive brands. Serious dependence on PET package and mass enthusiasm about Zhigulevskoe have negatively impacted the most of big regional brewers, that have been for the first time pressed by the leaders in the key sales channels, especially in Volga and Central regions. In the small business there has been a noticeable slowdown in appearing of new restaurant breweries, yet the number of craft breweries has been growing rapidly. In 2018, the beer market is likely to grow a little, while the share of AB InBev Efes may decrease due to the integration. ...
“Catalogue of Russian Beer Producers 2018” includes 1070 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft microbreweries.The catalogue includes 32 large breweries, 75 regional breweries, 693 industrial mini- and microbreweries as well as 270 restaurant breweries. ...
Global hop marketA local alternative to mass beer suggested by independent brewers has been successful and is now altering the global market. Beer is becoming more diversified, so transnational companies have to accept the new game rules and to switch focus to young and fast growing markets. All these processes increased the demand for aroma and bitter hop as well as their acreage expansion on two continents. However now there appeared a downward trend of alcohol consumption in the world, so even special sorts can soon turn to be sufficient. In this connection the dynamic American hop market is already facing some problems. EU hop producers have become more cautious, they are not racing to exceed the demand and look forward with more confidence, judging by the contract terms.
Hop Market in RussiaGermany still dominates the Russian market, yet over the recent two years one has been able observe a continuous success of Czech hop suppliers. Their expansion and growing popularity of hops from the United States became the drivers of supplies growth in 2016 despite the preceding modest harvest crop in the EU, as well as the factor of relative stability in 2017. In this connection, in 2017, the ratio of the varieties continued to shift towards the aroma ones, and the supplies of Magnum hop and other alpha varieties were reduced. However, the import of bitter hop pellets is partially replaced by extracts, especially from the major beer manufacturers. Total volumes of alpha acid supplies, according to our estimation, decreased by approximately 5% and returned to the level of 2015. Barth Haas Group continues dominating the hop products market; HVG also increased its weight. At the same time, Morris Hanbury significantly reduced the supplies in 2017.
Sabeco, Vietnam’s biggest brewer, to list on HOSE in December
The shares will start trading at 110,000 dong. Currently, Sabeco's shares are trading off-exchange at 130,000 dong, making the market value of the company 83.4 trillion dong ($3.6 billion).
Sabeco has charter capital of 6.4 trillion dong, equivalent to more than 641 million shares. Vietnam's Ministry of Industry and Trade holds a 89.59% stake in Sabeco, while Heineken has 5%.
Analysts speculated that the small amount of current floating shares will push the price up after the listing. The government's plans to sell a 53.6% stake in Sabeco this year and the remaining 36% stake next year following the divestment progress would make the shares more attractive to investors.
The main bourse listing process was sped up by the company and relevant authorities after Vietnamese Prime Minister Nguyen Xuan Phuc put the company's divestment under direct supervision of his cabinet.
Sabeco is the largest beer producer in Vietnam with 1.38 billion liters a year and held a 41% market share last year, followed by Heineken (729 million liters, 21.6% market share), and Hanoi Beer Alcohol Beverage, known as Habeco (668 million liters, 19.8% market share), according to the Vietnam Beverage Association.
In the first nine months of 2016, Sabeco's revenue grew 9% to 21.8 trillion dong, and its pre-tax profit was 4.5 trillion dong, up 21% year on year, meeting 108% of the full-year target. Net profit increased 23% to 3.5 trillion dong. The company's total assets were 22.7 trillion dong as of October.
Beer consumption in Vietnam reached 3.8 billion liters in 2015, and the industry expects annual growth of 4% to 5% for the next five years.
Local newspapers cited officials from Vietnam's Ministry of Industry and Trade saying that both Sabeco and Habeco have to list their shares on stock exchanges by the year-end, following the government's withdrawal plans from the two largest state-owned beer producers, in the market of over 93 million people.
Habeco, owned 82% by the state, launched its debut in 2008. It also plans to list on the HOSE next month. Habeco's shares closed at 100,000 dong on Thursday, double the price on its listing day on Oct. 28 on Vietnam's Unlisted Public Company Market.
Both Sabeco and Habeco stocks are expected to be on the list of stocks which have daily major impacts on the VN-Index after being listed on the HOSE.
18 Nov. 2016