The trend of complication of Russian beer market is going on and in several directions at the same time. The range has got wider, the import and small segments are growing, namely craft beer, alcohol-free beer and special flavor beer. At the same time, all ex-mega brands and light lagers by Russian brewers are experiencing a decline of their shares. AB InBev Efes, Heineken, MBC and Pivzavod Trekhsosenskiy have exceeded the market, Carlsberg was developing slower than the market and Ochakovo as well as some other mid-sized breweries have been cutting down their volumes. To a big extent brewers’ performance was connected to their ability to reach agreement with networks, sacrifice their margin and enter new markets. Craft brewers are facing a serious danger of producers’ registration introduction – de facto licensing. ...
The global outlooks of the legal market of cannabis are excellent. It is possible to simultaneously imagine dry law repeal and craft brewing boom but not in one but in several consumer categories. For alcohol is contained in liquids and cannabis derivatives can be in three physical forms.The value of legal market of cannabis and its products can reach 10% of the world beer market in five years, and in 2030-2040 even reach the same scope provided the current rates of legalization and development of market infrastructure remain at the same level. Cannabinoids are actively integrating into the food industry from chewing gum to beverages deforming the pharmaceutical and alcohol markets, they influence the trends of healthy lifestyle and beauty. ...
Beer market of Kazakhstan acquired both traits of East European countries and South Eastern Asia taking a transitional position between them by many criteria and consumption style. Yet there is a positive trend in beer production which differs Kazakhstan from most of the neighboring countries. The market has remained consolidated in the hands of two international players because of its small size. However, it faces dynamic processes such as fast growth of draft beer sales, up and downs of regional companies and Carlsberg Group’s ultimate expansion. Excessive mainstream segment has declined over the recent years, yet, Zhigulevskoe and national brands with regional links have yielded their positions to a range of new products. In our review special attention was paid to regional analysis of the markets. In 14 regions of Kazakhstan we compared the companies’ positions, the market price segmentation and DIOT channel development. Besides we have compared the beer market of Kazakhstan to neighboring countries. ...
FITCH affirms Foster’s at ‘BBB’; outlook stable
The rating affirmation follows Foster's 4 May 2011 announcement that the Supreme Court of Victoria had approved the Scheme of arrangement for the demerger of Treasury Wine Estates Limited. The Scheme was approved by shareholders at the Scheme Meeting held on 29 April 2011. Fitch concluded that the credit profile of the post-demerger "New" Foster's, consisting of Carlton and United Breweries and the International Beer Business, remains commensurate with the pre-demerger Foster's 'BBB' rating.
Foster's credit profile is supported by its leading market position in the duopolistic local beer market. "The Australian beer market is considered mature, with loyalty to incumbent local brewers, capital intensiveness and retailer shelf space acting as significant barriers to entry. These characteristics support the long-run collection of economic rents with modest levels of recurring investment requirements," said Johann Kenny, Director in Fitch's Corporate team.
Constraints to Foster's rating include its modest global scale and its limited geographic and product related diversification. Notwithstanding the adverse impact of the demerger on said product and geographical diversification, an improved management focus, asset intensity and a reduced exposure to the cyclical cash flow impacts associated with agricultural assets, will support the quantum and stability of Foster's cash flow generating capacity.
"Short term risks to Foster's credit rating profile include the threat of corporate action and the execution of the demerger strategy within the management announced demerger cost estimates," added Mr Kenny. Fitch takes comfort from the fact that Foster's has strong cash flow coverage and leverage metrics that provide some headroom and capital structure flexibility within the BBB range.
Longer term risks to Foster's credit rating profile arise from secular changes in consumer preferences leading to a decline in aggregate market share in the event of an unchanged sub-segment mix. Fitch considers Foster's short-term priority to realign and reinvest in its beer portfolio to be appropriate. Fitch also notes that Foster's has the required financial flexibility to effect such a change.
Should the financial structure post-demerger result in an improved financial profile such that adjusted net debt (i.e. capitalised for operating lease expense) falls to below 2x EBITDAR on a sustainable basis, then a positive rating action could result. Negative rating action may result from adjusted net debt to EBITDAR increasing to over 3.5x, and FFO interest cover reducing to below 3.75x on a sustainable basis.
Foster's is an Australia-based global producer and marketer of alcoholic beverages. Since its establishment in 1962, the company has owned and operated iconic Australian beer brands such as "VB" and "Carlton Draught".
Heineken Reckons Ethiopians Would Drink More Beer Given the Chance
If companies head to emerging markets to fuel top-line growth, many of them have the so-called BRIC countries in mind. By contrast, Dutch Brewer Heineken said Thursday it is about to buy two state-owned breweries in Ethiopia for a total of $163 million.
The fast growing and profitable Ethiopian market is a good pick for Heineken, which sees sales flat in mature markets. Ethiopian beer consumption has grown by around 20% a year for the past five years with the average annual consumption of beer around 3 liters per person at present. With a global annual average beer consumption of 27 liters per person, there is ample opportunity to get the Ethiopians to drink more beer.
The flipside of Ethiopia however is its fragile political system. The country’s political stability is currently rated at D by the Economist Intelligence Unit, with E being most risky. And the nation’s first ever multiparty elections were held just a decade ago.
That a brewer is not immune to political turmoil in a country can be illustrated by Heineken’s Egyptian operations. The brewer was forced to shut down its operations for two consecutive weeks during the unrest in January, hurting first quarter volumes.
To be fair, Heineken has long been criticized by the market for its over-exposure to the low growth Western European market where it generates around a third of its operational profit, hence expansion in the fast growing and profitable African market is most welcome to boost its earnings.
But a move into the rapidly expanding Asian market may be a safer bet. On Wednesday, Heineken’s peer Anheuser Busch InBev reported that its premium brands, such as Budweiser, grew over 7% in the first quarter in China. Heineken has hardly any presence in China, but aims to opens its own brewery there during the summer where it will make its premium brand Heineken. In the hope, of course, that it will refresh the parts other beers cannot reach.
6 мая. 2011