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.
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