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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.

Modelo’s Oz exports seen at risk from SAB-Foster’s

* SABMiller makes $10.1 bln bid for Foster's
* Success might mean problems for Modelo's Corona
* Analysts speculate on Australian distribution

Grupo Modelo's fast-growing export sales to Australia may be at risk if it has to look for a new distributor of its popular Corona brand Down Under if Foster's changes hands, analysts said on Tuesday.

SAB Miller (SAB.L) said it would keep talking to Foster's Group (FGL.AX) after it rejected SAB's A$9.5 billion ($10.1 billion) takeover offer as too low. Investors pushed up Foster shares in anticipation of an improved offer. [ID:nLDE75K1JW]

The possibility of SAB landing a stake or buying out Foster's, which holds a 50 percent and growing market share in Australia and distributes Corona there, could damage Modelo's brand presence, Credit Suisse said in a report.

"SAB Miller does not have a good experience in growing someone else's super-premium brands in a core market (see Amstel in South Africa) and may not want to pay up for Corona earnings that can walk out the front door," analysts Larry Gandler and Carlos Laboy wrote in a report.

"What are its (Modelo's) break-up clauses with Foster's in the event of a change of control at Foster's? For Modelo, it may need a new distributor in Australia."

Modelo declined to provide details about its distribution deal with Foster's. "We don't comment about the terms of the contracts with our importers," a company spokeswoman said.

Analysts, however, believe the agreement is becoming a crucial part of the Mexican brewer's export success.

Modelo's ties with Foster's have been good and are gaining momentum, analysts at Barclays Capital wrote in a report.

On a conference call to discuss first-quarter earnings in April, Modelo executives told analysts that Australia and New Zealand were among its fastest-growing beer markets.

"Specifically in Australia and New Zealand, consumers have showed great preference for our Corona Extra brand that continues gaining market share in the import segment," said Jose Pares, sales and marketing officer at Modelo.

Credit Suisse estimated Corona, Modelo's biggest-selling beer brand, makes up more than 5 percent of Foster's earnings. Australia is an important market for the Mexican firm, just after the United States and the United Kingdom.

Media reports earlier this month said Modelo (GMODELOC.MX) and Molson Coors Brewing Co (TAP.N) were mulling a joint bid for Foster's, but negotiations flopped due to a lack of consensus among the families who control the Mexican brewer.

Modelo has been traditionally averse to taking on debt to expand and has kept its focus on its home market in Mexico.

Modelo, its major shareholder Anheuser-Busch Inbev (ABI.BR) and SAB are seen by analysts as the only three brewers with sufficiently deep pockets to support a bid for Foster's. The company has never confirmed talks with Molson.

22 Июн. 2011



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