“Catalogue of Russian Beer Producers 2020” includes 1285 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft breweries.This issue has 171 more breweries compared to 2018 (155 business have been excluded and 326 have been included).Starting from 2019, FTS has been publishing data on excise payments by brewers (delayed by 1.5 years), that can be translated into beer equivalent for most of producers.Depending on the volumes, we ranked the brewers that provided information by 6 groups (see pic.). At one end of the production spectrum there are 2/3 of breweries outputting less than 10 thousand decaliters. Their net share amounts to as little as 0.2% of the total beer output volume. On the other end there are 6 federal groups accounting for almost 80%. ...
Dmitry Nekrasov’s Philosophy — on the Past, Present and Future of Ukrainian Brewing IndustryA meeting with Dmitry Nekrasov always turns into a training course: “Introduction to brewing business“. We are talking to a clever “playing trainer“ a person that can be called a godfather of the Ukrainian craft. He has a dozen of successful projects to his name. Dmitry told us about craft beer in Ukraine, on market cycles, on specifity of operating in retail and HoReCa, on union of Ukrainian brewers and certainly, how a brewery of his own, First Dnipro Brewery is doing.
The market of import beer in Russia: review and databasesThe market of import beer is rapidly growing and changing. But while in the past years it was growing due to brands variety, in 2019 major and affordable brands from TOP-10 were developing actively. It seems that the fact of a brand origin from far abroad counties, even if it is not well known but has moderate price and good distribution provides for million liters of sales in the territory of Russia. Among distributors AB InBev Efes was far behind, yet the role of Baltika and suppliers of the second row got more important. The boom of German brands was followed by stagnation of import from other traditional regions (and Belarus) instead the supplies from Mexico, Lithuania and Asian countries grew considerably.
Russia: Positions of Brewing CompaniesThe 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 brandsIn 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 2019During 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.
US. Two Craft-Beer Companies Shares, Only One ‘Buy’
Craft brewers, the marketing term for small and independent companies, saw barrel volume increase 11% and retail sales rise 12% last year, according to the Brewers Association. Overall U.S. beer sales slumped 1%. While the craft-brewing segment represents only 5% of the total beer market, it commands higher profit margins, making the potential for market-share gains almost inevitable.
Consumers have more beer options than ever, and they're picking quality over price. The consensus among beer aficionados is that the craft beers of today offer more taste and satisfaction than any of the big-brand manufacturers.
So how do investors capitalize on the craft-beer market? There are two publicly traded craft brewers: Boston Beer(SAM_) and Craft Brewers Alliance(HOOK_). The two companies are dwarfed by conglomerate beer makers Anheuser-Busch InBev(BUD_) and Molson-Coors(TAP_).
The majors are moving quickly to acquire specialty brewers wherever they can. Anheuser-Busch recently announced the acquisition of Goose Island Beer in Chicago for $39 million. More deals like this will be on tap. Molson-Coors last year announced the establishment of a new specialty division, Tenth and Blake, which features craft brands such as Blue Moon and Leinenkugel's.
Yet while more acquisitions are likely, many of the potential suitors such as the privately held Sierra Nevada, Magic Hat or Harpoon Brewery aren't available to investors. So let's take a look at the two publicly traded options -- Craft Brewers Alliance and Boston Beer -- to see if investors can still profit.
Craft Brewers Alliance: Brands include Redhook, Widmer Brothers and Kona Brewing Co. Craft Brewers Alliance was a 42% owner in Goose Island, for which it received $16.3 million from Anheuser-Busch InBev. Craft Brewers Alliance has deep relations with Anheuser-Busch InBev, which is centered on a third-party distribution agreement. Since Anheuser-Busch InBev also had a similar relationship with Goose Island, might there be the potential for another acquisition with Craft Brewers Alliance? At this point, the only potential suitor would be Anheuser-Busch InBev, which owns 32% of Craft Brewers Alliance, and is the sole distributor for all its brands.
Let's take a look at the numbers on the acquisition of Goose Island. The brewer, which produced 127,000 barrels of beer in 2010, was acquired for $39 million. This equates to $307 per barrel. If we take the 607,800 barrels produced by Craft Brewers Alliance in 2010, and using the same dollar/per barrel value, we arrive at a value of $186 million for Craft Brewers Alliance, a small premium (16%) to the current $160 million market value.
Since Craft Brewers Alliance has such a tight relationship with Anheuser-Busch InBev, it's highly unlikely that any other company besides Anheuser-Busch InBev would step in and make an offer for Craft Brewers Alliance. Aside from the distribution agreements, Anheuser-Busch InBev also has a solid presence on the board of Craft Brewers Alliance.
What benefits would Anheuser-Busch InBev get from acquiring the rest of Craft Brewers Alliance? Since the company is already getting paid for the distribution of Craft Brewers Alliance's brands, would it make sense to take more risk in assuming control of the rest of the company? With the acquisition of Goose Island, it's clear that Anheuser-Busch InBev is serious about getting into the craft business, but even a full acquisition of Craft Brewers Alliance wouldn't result in an enormous gain to shareholders.
TheStreet Ratings' quantitative ratings model gives Craft Brewers Alliance a '"hold." The model's main concern lies with the valuation of Craft Brewers Alliance, as the stock is currently trading at a trailing price-to-earnings ratio of of 55. Revenue rose 7% in 2010, not strongly enough to merit the current valuation. Overall, shares still look rich, as it appears that an acquisition has been priced into the stock. I'd avoid the stock for now.
Boston Beer: The company is widely credited with putting craft beers on the map. Boston Beer, the maker of Samuel Adams, is the only independent publicly traded craft brewer (with Craft Brewers Alliance 32%-owned by Anheuser-Busch InBev), and, in my opinion, offers better value.
While expectations call for only 6% to 7% revenue growth for 2012, Boston Beer is still by far the leader in the craft market, with a 22% share as of 2009 (according to Beer Marketer's Insights), substantially higher than the 8% share for No. 2 privately owned Sierra Nevada. Yet Boston Beer has no shortage of competitors, as emerging brands such as Dogfish Head have been at the forefront of the recent boom in the craft market.
Boston Beer has said it could top 10% growth this year without significant capacity expansion. The company should be able to benefit from continued growth in the craft beer market (or "better beer" category, as Boston Beer refers to it), as consumers will likely continue to buy brews of higher quality. In fact, according to a recent survey by Minit, "some 33% of all beer drinkers aged 21 and up are drinking less imported beer because they're drinking more domestic craft beer instead."
Boston Beer seems well-positioned, with 25 brews, ranging from the flagship Boston Lager, to more obscure offerings such as the "Barrel Room Collection," which are sold in a 750-ml bottle and finished off with a Champagne-style cork.
The company is trying to distance itself from the rest of the premium beer market. A new initiative, the "Freshest Beer Program," cuts the time and temperature the beer experiences waiting at wholesaler warehouses.
TheStreet Ratings' quantitative model has a "buy" rating and a $122 target on Boston Beer. The company scores best for growth (as evidenced by 43% growth in cash flows over two years), efficiency (most recent return on equity of 27%) and for financial strength (zero debt, $50 million in cash).
The stock has soared 75% over the past year, and at a trailing P/E of 26, the stock isn't cheap. However, with an investment in Boston Beer, you can buy into the growth of the craft beer market, while owning one of the premier brands in the beverage industry.
12 Апр. 2011