“Catalogue of Russian Beer Producers 2020” includes 1285 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft breweries.This issue has 171 more breweries compared to 2018 (155 business have been excluded and 326 have been included).Starting from 2019, FTS has been publishing data on excise payments by brewers (delayed by 1.5 years), that can be translated into beer equivalent for most of producers.Depending on the volumes, we ranked the brewers that provided information by 6 groups (see pic.). At one end of the production spectrum there are 2/3 of breweries outputting less than 10 thousand decaliters. Their net share amounts to as little as 0.2% of the total beer output volume. On the other end there are 6 federal groups accounting for almost 80%. ...
Dmitry Nekrasov’s Philosophy — on the Past, Present and Future of Ukrainian Brewing IndustryA meeting with Dmitry Nekrasov always turns into a training course: “Introduction to brewing business“. We are talking to a clever “playing trainer“ a person that can be called a godfather of the Ukrainian craft. He has a dozen of successful projects to his name. Dmitry told us about craft beer in Ukraine, on market cycles, on specifity of operating in retail and HoReCa, on union of Ukrainian brewers and certainly, how a brewery of his own, First Dnipro Brewery is doing.
The market of import beer in Russia: review and databasesThe market of import beer is rapidly growing and changing. But while in the past years it was growing due to brands variety, in 2019 major and affordable brands from TOP-10 were developing actively. It seems that the fact of a brand origin from far abroad counties, even if it is not well known but has moderate price and good distribution provides for million liters of sales in the territory of Russia. Among distributors AB InBev Efes was far behind, yet the role of Baltika and suppliers of the second row got more important. The boom of German brands was followed by stagnation of import from other traditional regions (and Belarus) instead the supplies from Mexico, Lithuania and Asian countries grew considerably.
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.
Kirin Pays $2.5 Billion to Acquire 50% Stake in Brazil Brewer Schincariol
Kirin bought Aleadri-Schinni Participacoes e Representacoes SA, acquiring 50.45 percent of Schincariol Participacoes e Representacoes SA, Brazil’s second-largest beermaker, the Tokyo- based company said in a stock-exchange filing. The purchase, completed today, was funded with cash and loans.
The purchase of the closely held maker of Devassa Bem Loura and Glacial is the biggest since 2009 for Kirin, which has spent more than $12 billion on overseas acquisitions in the past five years as Japan’s declining and aging population crimps domestic demand for beer and soft drinks. Kirin bought all of Australia’s second-largest beermaker in 2009 and owns almost half of the Philippines’ San Miguel Brewery Inc.
“Beer demand is poised to grow in Brazil, and so buying a well-known brand is important instead of entering by itself,” said Koichi Ogawa, a chief portfolio manager at Daiwa SB Investments Ltd. in Tokyo. “Investing abroad is the most rational way for Japanese food companies to use their cash.”
Kirin slid 0.3 percent to 1,148 yen at the 3 p.m. close in Tokyo, paring the stock’s advance this year to 0.8 percent. The benchmark Nikkei 225 Stock Average slipped 1.2 percent today.
Schincariol had 509 million reais in earnings before interest, taxes, depreciation and amortization last year and the deal gives it an enterprise value of 8.654 billion reais, according to Kirin’s presentation documents.
That would imply Kirin is paying an enterprise value-to- Ebitda multiple of 17 times, compared with an average of 12.5 for beverage makers with a market value of at least $1 billion, according to data compiled by Bloomberg.
“We have been looking for promising targets to gear toward further growth, and we found a prominent one in Brazil where we see potential,” Kirin President Senji Miyake said at a briefing in Tokyo. “The Brazilian market for beer and soft drinks outstrips that of Japan.”
Brazil is the world’s third-largest brewery market by volume, with China the biggest and the U.S. ranking second, according to market researcher Mintel International Group Inc.
Primo Schincariol Industria de Cervejas e Refrigerantes SA controls about 11 percent of the beer market in Brazil, while Anheuser-Busch InBev NV (ABI), the world’s biggest brewer, holds a share of about 70 percent, according to Nielsen data. Primo Schincariol is a unit of Schincariol Participacoes e Representacoes, said Kan Yamamoto, a Kirin spokesman.
Kirin said it will use its technology and marketing to help boost Schincariol’s annual sales by 10 percent on average.
Schincariol, which also makes soft drinks, juice and bottled water under the Schin and Skinka brands, had gross revenue of 5.7 billion reais last year, according to the statement. The Brazilian company employs about 10,000 people and derives about 82 percent of sales from beer and 18 percent from soft drinks, Kirin said.
It’s Kirin’s first acquisition in Latin America, according to data compiled by Bloomberg. The company has an affiliate to sell Japanese sake in Brazil, Yamamoto said.
The ratio of 17 times enterprise value-to-Ebitda at which it made the purchase is almost double the 9.01 median of 10 similar deals from 2002 to 2009, according to data compiled by Bloomberg. Kirin paid a multiple of 13.13 when it took Australia’s No. 2 brewer Lion Nathan Ltd. private in 2009 for A$3.5 billion ($3.8 billion).
The Japanese brewer made about 23 percent of last year’s 2.2 trillion yen ($28.4 billion) sales abroad, compared with about 14 percent in revenue from overseas in 2005, according to data compiled by Bloomberg.
Kirin’s A2 credit rating was put on review for a possible downgrade by Moody’s Investors Service. While the deal may benefit Kirin, the Japanese brewer is entering “a new market in which it has limited expertise,” Moody’s said.
Heineken NV (HEIA), the world’s third-largest brewer, had considered making an offer for Schincariol, people familiar with the matter said in May, and London’s Sunday Times reported that SABMiller Plc (SAB), the maker of Grolsch and Peroni, may have been interested in bidding for the Brazilian beermaker, without saying where it got the information.
Japanese companies have announced $46 billion of cross- border acquisitions in 2011, making it the busiest year for such deals since 2008, according to data compiled by Bloomberg.
A stronger yen also makes it cheaper for Japanese companies to make acquisitions abroad. The yen was at 77.42 per dollar as of 3:01 p.m. in Tokyo from 77.21 in New York yesterday. The Japanese currency reached 76.30 versus the dollar yesterday, the strongest since it touched a record 76.25 on March 17.
Citigroup Inc. advised Kirin, Japan’s second-largest brewer by volume, trailing Asahi Breweries Ltd. Kirin borrowed some of the funds for the acquisition in a bridge loan from Bank of Tokyo-Mitsubishi UFJ Ltd. and Citigroup, Ryoichi Yonemura, general manager at the company’s strategic planning department said. The amount and terms of the loan weren’t disclosed.
25 Авг. 2011