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3-2019

Russia: Positions of Brewing Companies

The review contains an analysis of interim performance of brewers in the first half of 2019. There are rather dynamic changes behind a modest industry growth. Baltika is again experiencing a stage of volumes and market share slid due to competition with AB InBev Efes. Because of the price competition and presence expansion in the modern trade company #2. has come close to the leading position. At the same time sales of Heineken Russia have continued growing which makes the premium part of the portfolio heavier. The market premiumization trend had been also confirmed by import brands. MBC and Zavod Trekhsosenskiy have been the most successful among federal market players. The market share of independent regional brewers and Ochakovo have continued falling as they are being squeezed out by the market leaders at their competitive fields.

Ukrainian beer market 2019: companies and brands

In 2019 beer production and market have been still fluctuating about zero point. However, the past season was successful for brewers judging by the sales profitability. The price mix has improved due to rapid general market premiumization, as well as its particular aspect, the growth of import beer sales. By the season end AB InBev Efes improved its positions considerably. It turned out that consumers had not forgot Efes brands that had to leave the market, but started to recover rapidly. Against the stagnating market that meant sales decline of other companies, in the first place Carlsberg Group that most of all beneficiated from Efes exiting the market. PPB turned out to be stable to branding activity of its competitor and Obolon kept the same volumes and at the moment it is the absolute leader of the economy segment. The share growth of independent producers took place thanks to leading craft breweries, that so far do not have a big market weight, but they are rapidly gaining it.

Brewing industry in Kazakhstan 2019

During the first half of 2019, the majority of Kazakh brewers made their contribution into positive dynamics. Yet it was companies of the lower division, not the two transnational leaders that raised their production and sales. The shares of draft beer and aluminum can which is rapidly squeezing glass bottle out of the market, have been growing. The price segmentation has remained stable despite the substantial rise of retail prices and fluctuations of brand market shares, while the borders between segments have become blurred. The main events in the industry have been: the announced revision of the beer excise policy, launch of BeerKhan brand in the strong beer segment, and most important – purchasing assets of Shymkentbeer by Arasan.

SABMiller plc To Bid On Brewer

The Sunday Time has reported that SABMiller plc may bid for Brazil’s Schincariol.
Canada's thwarting of BHP Billiton's $39-billion hostile bid for PotashCorp last year was a setback for big companies looking for acquisitions.
Before that bid, five large cross-border mining deals had already been rejected by regulators or governments, according to the Financial Times.
Competition authorities around the world have started to crack down, especially in Europe.
"It's becoming more and more difficult to get regulatory approval for the really big transactions," said Leon von Moltke, head of debt restructuring at RMB.
But Rob Forsyth, head of industrials at Investec Asset Management, said: "With SABMiller and AB InBev there isn't much in-market overlap.
"Beer is all about branding and marketing."
Forsyth said marrying the cost-cutting culture of AB InBev with SAB's marketing would be advantageous.
In 10 years, rapid consolidation resulted in the top four breweries - AB InBev, SABMiller, Heineken and Carlsberg - accounting for nearly half the world's beer sales.
Brewery deals have totalled $141.9-billion in five years, and the opportunities for more consolidation among the big players looks limited, though executives expect acquisitions to continue as global brewers expand.
Organic volume growth is expected to come from developing markets. Emerging markets have grown at 6.8% in five years while developed markets dropped to 3.4%. The biggest growth is in China, Africa and Eastern Europe.
About 80% of SABMiller's sales and profits come from emerging markets.
AB InBev is bigger than SABMiller in terms of volumes brewed (348-million hectolitres versus 244-million hectolitres) and market capitalisation ($87-billion against SABMiller's $54-billion).
A merged group would produce one-third of the world's beer, combining brands such as AB InBev's Budweiser and Stella Artois with SABMiller's Castle, Miller Lite and Peroni.
There is surprisingly little overlap between the two, apart from in the US, which would present a problem.
The combined group would have nearly 80% of the market in the US, but SABMiller would have to sell its 58% stake in MillerCoors in the US.
Analysts are divided about the possibility of a merger, and no one sees it happening soon.
Four years ago, InBev directors met their SABMiller counterparts but no deal materialised. At the time InBev balked at the prospect of having to pay a premium to the SABMiller share price - which has since doubled.
Traditionally, big deals have been about willing sellers and buyers. But national interest is a growing factor and the government has become protective of SA-founded assets. The Department of Trade and Industry wants the Competition Commission to block Kansai Paint of Japan's hostile takeover of Freeworld Coatings. And various departments have become involved in Walmart's buyout of Massmart.

4 Апр. 2011

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