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.
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. ...
US. Craft Brewers Alliance Reports Second Quarter 2011 Results
Craft Brewers Alliance, Inc., an independent craft brewing company, reported net sales of $41.5 million and net income of $8.2 million for the second quarter ended June 30, 2011 as compared with net sales of $37.2 million and net income of $1.7 million for the same quarter a year ago. CBA reported $0.43 earnings per share on a fully diluted basis for the second quarter of 2011 as compared with $0.10 per share for the same quarter one year ago. On May 2, 2011, CBA completed the sale of its minority interest in Fulton Street Brewery, LLC (“FSB”) to Anheuser-Busch, Incorporated (“A-B”) for cash consideration and a reduction in distribution fees. The $10.4 million gain on sale contributed $6.5 million to net income and $0.34 earnings per share for the 2011 second quarter.
Significant financial highlights for the quarter ended June 30, 2011 include:
Net revenues increased $4.3 million, or 11 percent, to $41.5 million compared with the second quarter of 2010
Depletion growth for the second quarter of 2011 was six percent
Gross profit percentage increased 450 basis points
Selling, general and administrative expenses increased $3.1 million to $10.7 million, reflecting increased sales and marketing efforts
Capital expenditures were $1.7 million as the Company continued to make strategic investments in systems and infrastructure
Cash proceeds of $15.1 million from the sale of FSB led to an increase in working capital of $8.5 million
“We are pleased that our revenue and volume growth continues to reflect the success of our sales, marketing, operations and execution initiatives of our unique portfolio strategy,” said Terry Michaelson, CBA’s CEO. “We believe our focused investments in new beers, new packaging and our sales team will not only expand customers’ opportunities to enjoy our portfolio of beers but will generate ongoing sales and profit growth over the long term. We remain resolutely committed to increasing both our revenue and profitability for the full year.”
Net sales for the second quarter ended June 30, 2011 were $41.5 million, an increase of $4.3 million, or 11 percent, from net sales of $37.2 million for the same quarter in 2010. The increase resulted from a combination of factors, primarily the increase in the 2011 second quarter shipments to wholesalers, price increases for the Company’s beers sold to wholesalers, and an increase in revenues earned from the Company’s restaurants and pubs following the merger with Kona Brewing Co., Inc. (“KBC Merger”).
Total shipments for the second quarter ended June 30, 2011 were 191,100 barrels, an increase of 20,200 barrels, or 12 percent, from 170,900 barrels for the same quarter of 2010, primarily reflecting the increase in shipments to wholesalers and growth in the Company’s contract brewing business.
Cost of sales as a percentage of net sales improved 450 basis points in the second quarter of 2011, reflecting the elimination of costs related to the Kona Brewing alternating proprietorship, improved capacity utilization and an increased selling price for the Company’s beers. These favorable factors were partially offset by increased shipping costs due to higher fuel prices in the second quarter of 2011 as compared with the same quarter a year ago.
Selling, general and administrative (SG&A) expenses of $10.7 million for the three months ended June 30, 2011 increased $3.1 million, or 41 percent, from $7.6 million for the corresponding quarter a year ago. This increase reflects CBA’s intent to bolster its selling and marketing costs to levels that are appropriate for a leader in the competitive craft brewing market. The increase was also driven by SG&A costs related to the operations acquired in the KBC Merger. The Company expects SG&A spending to continue at an elevated level for the remainder of 2011 as it continues its campaign to penetrate select focus markets and deliver new and exciting beers and packages to consumers.
On May 2, 2011, CBA completed the sale of its minority interest in FSB to A-B in exchange for its share of the purchase consideration, which totaled $16.3 million, including $15.1 million paid to the Company at closing. CBA also received reimbursement for certain legal and professional fees it incurred in the evaluation of the transaction of $266,000. The Company recorded a gain of $10.4 million during the second quarter of 2011 associated with its sale of FSB. In connection with the closing, the Company and A-B amended their distribution agreement to reduce distribution fees for the remaining term of the arrangement, as well as the renewal term, if applicable, beginning January 1, 2019.
“The quarter’s results reflect a 450 basis point expansion in our gross profit margin, accelerating the trend from the first quarter due to our volume gains and impact of the amended A-B distribution agreement in spite of higher fuel costs,” said Mark Moreland, CBA’s CFO. “We expect to continue to re-invest a significant portion of the gross margin gains into sales and marketing initiatives to drive growth while continuing to generate improved profitability.”
Cash Flow and Liquidity
Cash provided by operating activities decreased $2.2 million to $2.1 million for the quarter ended June 30, 2011 compared with $4.3 million for the same period in 2010, due in part to a decrease in the level of accounts payable, partially offset by improved accounts receivable collections. Capital expenditures for the quarters ended June 30, 2011 and 2010 were $1.7 million and $357,000, respectively. The capital expenditures for 2011 include projects designed to enhance and target the core brand offerings and package variety produced at CBA’s breweries, and improve its quality assurance and information technology systems, including continuing investments towards a company-wide demand planning and order management system. The Company expects spending on these projects to continue through the remainder of 2011 and to total approximately $2.5 million to $3.5 million during this period.
As discussed above, the Company received proceeds from the sale of FSB of $15.1 million on May 2, 2011. A portion of those proceeds was used to pay off the outstanding borrowings on its line of credit during the second quarter of 2011. On July 20, 2011, the Company also prepaid the remaining balance on its capital leases of $3.8 million.
Statements made in this press release that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future, including the level or effect of increased SG&A expense, the amount of capital spending and the benefits or improvements to be realized from those capital projects, and the increase in sales revenues resulting from reduced distribution fees payable to A-B, are forward-looking statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including, but not limited to, the Company's report on Form 10-K for the year ended December 31, 2010. Copies of these documents may be found on the Company's website, www.craftbrewers.com, or obtained by contacting the Company or the SEC.
About Craft Brewers Alliance
CBA is an independent, publicly traded craft brewing company that was formed with the merger of leading Pacific Northwest craft brewers – Widmer Brothers Brewing and Redhook Ale Brewery – in 2008. With an eye toward preserving one-of-a-kind beers and brands by giving them an opportunity to shine and grow, CBA was joined by Kona Brewing Company in 2010. When Kurt & Rob Widmer founded Widmer Brothers Brewing in 1984, they didn’t confine their brewing exploration to strict style guidelines. To this day, Widmer Brothers continues to create craft beers with a unique and unconventional twist on traditional styles that are award winning and please a wide range of craft beer lovers. Redhook began in a Seattle transmission shop in 1981, and those colorful roots are reflected in the brand’s personality to this day. The eminently drinkable beers consistently win awards and please crowds across the United States. Kona Brewing was founded in 1994 by the father and son team of Cameron Healy and Spoon Khalsa, who dreamed of crafting fresh, local island brews with spirit, passion and quality. As the largest craft brewery in Hawaii, Kona personifies the laid-back, passionate lifestyle and environmental respect of the Hawaiian people and culture.
16 Авг. 2011