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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.

SABMiller’s Fosters bid loan totals $12.5 billion

Global brewer SABMiller is raising a $12.5 billion syndicated loan to back its hostile bid for Fosters , banking sources said on Thursday.
The dollar-denominated loan is priced at around 90 basis points (bps) over LIBOR, the sources said, well under European banks' dollar funding rates which spiked this week.

The loan includes an 18-month bridge loan to bond issues of around $8.5 billion and also includes three and five-year term and revolving facilities, one of the bankers said.

SABMiller is arranging the loan itself and has asked banks to commit $1.6 billion each.

SABMiller is pushing to close its jumbo loan as Europe's dollar funding crisis deepens.

SABMiller is expected to raise the full amount of the loan from banks with easy access to dollar funding -- either U.S. banks with dollar retail deposits or Japanese banks with lower funding costs.

The decision to join the loan is a painful one for many of Europe's top arranging banks, which are paying nearly twice as much for dollars as the loan's interest margin.

The marginal cost of dollar funding is more than 200 bps, using Credit Default Swaps as a proxy, a senior loan banker said.

"Dollar funding costs are worse now than when this loan was discussed. In the last 10 days, everyone has seen the cost of funding dollars on a marginal basis ramp up," he added.

While banks will net significant ancillary business from the company's planned bond issues, European banks will lose money on the loan component.

"Banks will have to swallow the implied cost of funds to get the ancillary business," the senior loan banker said.

The loan may be syndicated further at a later stage to reduce banks' exposure and risk.

The loan's pricing varies across the different maturities of the tranches. Pricing on the bridge loan steps up over time to encourage an early refinancing in the bond market.

The $12.5 billion loan is expected to be signed on Friday, the sources said.

19 Авг. 2011



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