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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.

Molson Coors 2Q profit falls on higher costs

Molson Coors Brewing Co. found that higher prices were not enough to offset weak beer sales and increased costs for fuel and ingredients in the second quarter. The maker of Coors Light, Keystone Light, Carling and other beers reported Tuesday that its net income fell 6 percent, missing analysts' expectations.

Still, company officials said that Molson Coors is performing quite well despite the larger macroeconomic picture, which including economic woes in U.S. The company said it has been able to gain market share in the U.S. and overseas.

"The external world is what it is," said Molson Coors CEO Peter Swinburne. "But there are a lot of things we are going on internally that we are doing to reach consumers."

Beer makers have been struggling for some time with weak sales volume as consumers grapple with the impact of the tough economy. That problem has been compounded by escalating fuel, packaging and ingredient costs, which are affecting nearly all consumer product makers.

Molson Coors has been particularly hard hit by the U.S. economic downturn as its core customer -- men under the age of 28 -- are seeing particularly high unemployment. The situation worsened during the quarter as unemployment and gas prices ticked up.

To weather the downturn, Molson Coors, which said costs for the quarter were higher than it anticipated six months ago, continued to keep a tight lid on its spending. The company had been using that cost-cutting strategy in the past few quarters to remain profitable.

And like many other companies, Molson Coors has looked to increase its presence overseas as a way to bolster its business at a time when U.S. consumers' spending remains conservative. While the company said it increased its market share in the U.S. slightly, it had bigger gains in places such as U.K. during the period.

The company also increased its push into emerging markets. In India, it purchased a controlling stake in a joint venture during the period. In China, it introduced Coors Light during the quarter.

However, Molson Coors' heavy investment in its overseas business also hurt its bottom line during the period.

Molson Coors reported that it earned $222.8 million, or $1.18 per share, for the period ended June 25. That's down from $237.2 million, or $1.27 per share, a year ago. Revenue rose 6 percent to $933.6 million.

Analysts had expected the company to earn $1.29 per share on revenue of $958.5 million, according to data from FactSet.

Shares of the company fell 30 cents to $44.33.

Molson Coors also said Tuesday that it will buy back up to $1.2 billion shares. The new repurchase program, approved by Molson Coors' board, is expected to span three years.

AP

3 Авг. 2011

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