Beer market of Russia 2018
- General market picture
- Foreign trade setting records
- Demography as challenge to branding
- Aged consumer
- Declining of youth brands
- Nostalgia on trend
- DIOT feels at home
- 5.0 Original is the new face of import
- Positions of Market Leaders
- Carlsberg Group
- AB InBev Efes
- AB InBev
Ukrainian beer market 2018
- Better than yesterday
- Performance by value
- Positions of Ukrainian brewers
The beer market dynamics in Russia is approaching zero, yet major brewers are divided into those who developed considerably in 2017 and those who considerably reduced their volumes. For instance, company Efes has managed to substantially extend their sales due to restrained pricing policy and activity in the modern trade. Heineken has also demonstrated an excellent performance promoted by significant increase of advertisement budgets launching a non-alcohol sort of the title brand and unusual activity in the economy market segment. Carlsberg and AB InBev have been focusing on margins and lost a market share of their inexpensive brands. Serious dependence on PET package and mass enthusiasm about Zhigulevskoe have negatively impacted the most of big regional brewers, that have been for the first time pressed by the leaders in the key sales channels, especially in Volga and Central regions. In the small business there has been a noticeable slowdown in appearing of new restaurant breweries, yet the number of craft breweries has been growing rapidly. In 2018, the beer market is likely to grow a little, while the share of AB InBev Efes may decrease due to the integration. ...
“Catalogue of Russian Beer Producers 2018” includes 1070 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft microbreweries.The catalogue includes 32 large breweries, 75 regional breweries, 693 industrial mini- and microbreweries as well as 270 restaurant breweries. ...
Weak Foster’s results give SABMiller’s offer a chance
An appreciation of the Australian dollar against sterling would mean that SABMiller was not only unlikely to enhance its A$4.90 (R36.76) a share offer but would use the A$500 million “cash return”, proposed by Foster’s chief executive John Pollaers, as an excuse to walk away from the deal.
Following last week’s release by Foster’s of a pedestrian set of results for the year to June, analysts and commentators appear to believe that SABMiller, the second-largest beer group in the world, is likely to succeed in its bid for control of the high-margin and cash-rich Australian beer group.
A number of analysts remarked that not only were the results on the weaker side of expectations but that Pollaers’ proposals for turning around the group were unconvincing. So unpersuasive were Pollaers’ revival plans that one analyst presumed he was already setting the scene for a compromise arrangement with SABMiller.
“Pollaers is an extremely ambitious individual and very competent, given what he did for Diageo in south Asia; if he could be convinced that there is a role for him at the second largest beer group in the world he might be persuaded to talk the board and shareholders into supporting the SABMiller offer”, remarked an individual who has worked with Pollaers.
However, analysts pointed out that such persuasion would have to include some sort of sweetener on the A$4.90 a share offer price.
The long list of conditions that SABMiller attached to the conditional offer it announced 10 days ago included that the offer would be reduced by the amount of any dividend paid and that any dividend payment would be limited to 15 Australian cents a share. Last week when Foster’s released its results, it announced a dividend of 13.25c a share.
Analysts believe SABMiller could lift its offer to just over A$5 a share, and allow the dividend, for a revived offer of an effective A$5.15 a share. This would represent a more appropriate premium for control of what Barclays Capital described as one of the few remaining sizeable and independent beer businesses in the world.
Significantly, after some volatility in the wake of the results announcement, the Foster’s share price appears to have settled at just over A$5.
Foster’s disappointing results, its pedestrian revival programme and the uncertainty surrounding global markets works to SABMiller’s advantage. In addition, the absence of any competing offer from one of the other major beer groups enhances the attractiveness of the SABMiller bid.
However, as the UK’s Financial Times noted last week in response to the results, while there has been no sign of another beer company making a bid, Foster’s is an extremely attractive cash-generating operation, which makes it an attractive private equity proposal. But the drivers of a private equity deal would have to be confident that they have access to the sort of management skills that can generate the improved performance that SABMiller is confident it can achieve.
In the absence of any competing offer in the coming weeks it seems likely that SABMiller will secure one of the last few remaining independents in this rapidly consolidating industry.
29 Авг. 2011