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. ...
Beer market of Kazakhstan acquired both traits of East European countries and South Eastern Asia taking a transitional position between them by many criteria and consumption style. Yet there is a positive trend in beer production which differs Kazakhstan from most of the neighboring countries. The market has remained consolidated in the hands of two international players because of its small size. However, it faces dynamic processes such as fast growth of draft beer sales, up and downs of regional companies and Carlsberg Group’s ultimate expansion. Excessive mainstream segment has declined over the recent years, yet, Zhigulevskoe and national brands with regional links have yielded their positions to a range of new products. In our review special attention was paid to regional analysis of the markets. In 14 regions of Kazakhstan we compared the companies’ positions, the market price segmentation and DIOT channel development. Besides we have compared the beer market of Kazakhstan to neighboring countries. ...
Foster’s May Use Buyback to Fend Off SABMiller
Fosters, which reports full-year earnings tomorrow, may return as much as A$1 billion ($1 billion) in capital to shareholders, using cash from tax refunds and lower debt to boost the share price, analysts at Citigroup Inc. said.
Australia’s biggest brewer is fending off SABMiller’s bid and trying to stem market-share losses as natural disasters and slumping consumer sentiment crimp the developed world’s widest brewing profit margins. Pollaers, a former Australian Navy weapons engineer who spent almost 20 years at spirits maker Diageo Plc (DGE), is betting that spending more on brands and lowering production costs will restore profit growth.
“He seems to be the right man in the right place,” said Theo Maas, who helps manage $5 billion of equities at Arnhem Investment Management Pty. in Sydney. “He is managing in a very difficult environment, and while it would be a lot easier to just deliver strong numbers and say it only gets better, he can’t.”
Earnings before items probably fell 7.7 percent to A$494 million in the 12 months ended June, according to the median estimate of three analysts surveyed by Bloomberg News.
Foster’s shares fell 0.6 percent to A$4.90 at the 4:10 p.m. close of Sydney trading, matching SABMiller’s cash offer. The stock has risen 7.2 percent so far in 2011, and has gained in three of the past nine years.
Pollaers has been CEO of Foster’s since it completed the spinoff of Treasury Wine Estates Ltd. in May, ending the company’s 15-year involvement in wine that cost more than A$8 billion to build and resulted in about A$3 billion of writedowns.
The company has refused to enter talks with SABMiller since rejecting a bid on June 21, arguing the A$4.90 a share offer, which will be reduced by the amount of any dividends paid, “materially undervalues” the company.
Foster’s is worth about 12.3 times forward earnings before interest, taxes, depreciation and amortization in a bid situation, according to Citigroup, which recommends investors “hold” their Foster’s shares.
SABMiller said in June the offer valued Foster’s at about 12.5 times earnings before interest, tax, depreciation and amortization and stuck by that valuation last week. InBev NV paid about 13.2 times Anheuser-Busch Cos. in the 2008 purchase, the industry’s largest, that created Anheuser-Busch InBev NV, according to data compiled by Bloomberg.
SABMiller said Aug. 17 it would go directly to Foster’s investors after the board declined to start negotiations.
“We are not saying we would never engage,” Pollaers said in Melbourne on July 29. “The value put on the table there was just so far away from reality, it wasn’t worth engaging.”
Pollaers wasn’t available for an interview before the results release, said Andrew Butcher, a spokesman for Foster’s external media adviser Butcher & Co.
“Foster’s is likely to increase the stakes on Aug. 23 with its fiscal 2012 outlook commentary, requiring SABMiller to increase its bid,” analysts at Nomura Holdings Inc. led by David Cooke, said in a Aug. 17 report. “We anticipate Foster’s commentary will include detail on cost reduction programs and capital management.”
Foster’s net income will probably be A$714 million for the year ended in June, according to the average of three analysts’ estimates compiled by Bloomberg, which included contributions from Treasury. The company posted a loss of A$464 million in the previous year on writedowns from the wine business.
Foster’s has said it’s increasing advertising on brands including Victoria Bitter, Australia’s best-selling beer, and Pure Blonde and is paring the workforce at its Melbourne brewery to cut costs.
“The company’s first beer-only result for 15 years will likely be characterized by declines in both net sales revenue and margins,” Andy Bowley, an analyst at Citigroup, wrote in an Aug. 18 report. He rates the stock “hold.”
Prior to taking charge of the whole company, Pollaers ran Foster’s domestic beer business for 13 months. He has a masters of business administration through a joint program by INSEAD and Sydney’s Macquarie University and has degrees in electrical engineering and computer science, according to Foster’s website.
He started at London-based Diageo, the maker of Johnnie Walker scotch, in 1990 and had roles at the London-based company including U.K. finance director, Australian head and President of the Asia-Pacific region before joining Foster’s.
The takeover offer from the maker of Miller Lite and Grolsch will have to rise by about 6 percent to A$5.20 to succeed, according to the median estimate of 13 analysts surveyed by Bloomberg News.
“The failure of competing bidders to emerge, volatility in world financial markets and the prospect of poor trading in Australian beer in the six months to June, appear to have strengthened SAB’s hand,” analysts at Barclays Capital including Simon Hales wrote in an Aug. 18 note.
Foster’s beer operating margin, or earnings before interest and taxes as a proportion of revenue, may fall to 37.5 percent from 38.3 percent in their first decline in a decade, according to Citigroup.
That’s still more than the 23.5 percent of SABMiller and 30.8 percent at AB InBev, the world’s biggest brewer, according to data compiled by Bloomberg.
January’s flooding in Australia’s Queensland and Victoria states, two of the nation’s three most populous, as well as the February earthquake in New Zealand’s Christchurch sapped demand. Australian consumer sentiment last month fell to the lowest level since May 2009, according to a Westpac Banking Corp. and Melbourne Institute survey.
“The value in Foster’s has always been about the longer- term cash potential of the business and limited reinvestment requirements,” Paul Van Meurs, an analyst at Deutsche Bank AG in Sydney, said in an Aug. 18 report. “While the consumer environment undoubtedly has taken a turn for the worse in the last few weeks in Australia, we find it hard to believe that structural change has taken place during this period.”
22 Авг. 2011