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. ...
CR Snow Breweries Bids for Houli Beer; Eyes Guangdong Market
The bid for the Shaoguan-headquartered brand comes 6 months after CR Snow Breweries lost out on a 21.37% stake in another local brewer, Kingway Brewery Holdings Ltd., to Belgium’s Anheuser-Busch InBev NV.
“We lost the bid for Kingway, but that doesn’t mean the end of our acquisition drive, which is core to our strategy of gaining market share first, even if that means profitability has to come later,” Zhao Xifang, general manager of CR Snow Breweries’ Guangdong branch, told the Southern Metropolis Daily.
Huoli Beer has a production capacity of 150,000 tons per annum and distributes Huoli-branded beer products in Guangdong, as well as neighboring Jiangxi and Hunan provinces.
“After being incorporated into the CR Snow Breweries family, Huoli Beer is expected to face a better future in the Pearl River Delta market, and with its geographical advantage in Shaoguan, it would also help CR Snow Breweries to entrench its position in the Hunan and Jiangxi markets,” Zhou Maohui, secretary general of the Guangdong Provincial Alcohol Industry Association, told the Southern Metropolis Daily.
Huoli Beer has all but halted production and is going through the process of bankruptcy, after which its assets will be auctioned off, according to Zhao.
CR Snow Breweries hasn’t the disclosed financial details of the deal, but Zhao said money is of little concern for the brewer, which is a joint venture between London-based SABMiller Plc. and China Resources Enterprise Ltd. (2319.HK).
CR Snow Breweries is looking to boost its presence and production capabilities in Guangdong, where it has only 1 plant compared to the 3 run by its biggest domestic rival Tsingtao Brewery Co. Ltd. (600600.SH), which have a combined annual output of more than 1 million tons from Guangdong.
The current plant’s 400,000 ton annual production capacity is far from enough to ease the brewer’s production pressures, according to Zhao.
“Our parent China Resources Group signed an agreement with the Guangdong Provincial Government at the beginning of the year to invest RMB 10 million in the province, and investments in the beer sector are part of that [agreement],” Zhao said.
“Under that backdrop we are going to seize opportunities in the market; that could mean both mergers and acquisitions and the establishment of new production plants,” Zhao said.
Shenzhen-based CR Snow Breweries is slowly shifting its focus from more mature markets in East China to growth opportunities in south and southwestern China. Last month the company inked a deal to buy a 70% stake in Moutai Beer for RMB 270 million.
Moutai Beer is a brand under liquor producer Kweichow Moutai Co. Ltd. (600519.SH), located in southwestern China’s Guizhou province.
“Beijing, Shanghai, Guangzhou and Shenzhen are the 4 most important cities in China, and for us that means we must have a solid foothold there to match our position as the country’s largest beer producer,” Zhao said, hinting that Guangdong’s capital Guangzhou would be the brewer’s next target.
Local brand Pearl River Beer currently has a dominant 46% market share in Guangzhou, followed by Tsingtao Brewery with 15% and AB-InBev’s 10%, according to data provided by private information house Societ Insights & Decision.
6 Сен. 2011