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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.

AB InBev cautious over challenging times in U.S.

Anheuser-Busch InBev , the world's largest brewer, warned of challenging times in its biggest market of the United States after beer prices rises there and in Brazil helped it meet second-quarter profit forecasts.

The brewer of Budweiser and Stella Artois said it was monitoring the U.S. economy closely, but was more positive for its second biggest market Brazil where it expects beer volumes to recover in the second half after a dip in the second quarter.

Chief Financial Officer Felipe Dutra said on Thursday that he remained cautious on the United States, saying he was watching the economy closely after quarterly beer volumes there dipped 3.4 percent due to poor weather and higher fuel prices.

Other food and drink companies have pushed through price increases to offset big hikes in commodity costs, but analysts doubt if these big rises can continue while many world economies remain sluggish, particularly the U.S. and Europe.

AB InBev shares slipped 0.5 percent to 34.97 euros by 3:45 a.m. EDT with analysts concerned about prospects for recovery in the U.S. and Brazil as around three-quarter of the group's profits comes from the American region.

"The numbers did confirm that in the two key markets which are crucial to AB InBev, the USA and Brazil, there's no momentum in terms of volumes. Expectations were relatively low and they delivered on the bottom line, but again it's confirmation that the momentum is not there in the two crucial markets," said analyst Karel Zoete at Rabobank.

Second-quarter core profits or EBITDA (earnings before interest, tax, depreciation and amortization) increased by 6 percent to $3.75 billion, in line with forecast from a Reuters poll as the group raised prices to offset flat beer volumes.

In Brazil, beer volumes fell 2.6 percent due to low growth of disposable income, and because of tough comparisons with last year which was boosted by the football World Cup.

"We are confident the slowdown is temporary," AB InBev's Dutra told reporters. "We see a significant increase in real terms for minimum wages...this has an impact on disposable income and therefore consumption as we approach the year end."

Worries over rising unemployment and stagnant wages pushed U.S. consumer sentiment to a two-year low in July, while in Brazil consumer sentiment also reached a two-year low in June due to concerns over inflation.

Miller Coors, the second-largest brewer in the United States, owned by SABMiller Plc and Molson Coors Brewing Co , also said earlier this month that it managed to increase profit in the second quarter by raising beer prices and cutting costs in the face of a tough market.

AB InBev stuck to its forecast that costs savings from its takeover of Anheuser-Busch in 2008 would total $2.25 billion by the end of 2011.

12 Авг. 2011

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