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. ...
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. ...
Buying a business in Romania: cultural due diligence and hidden cultural rules
“This transaction allows us to consolidate our leading position in Romania. We have a stronger portfolio , more diversified with leading brands and an excellent platform through which we will bring the value and development,” said at the time Nico Nusmeier, Regional President of Heineken for Central and Eastern Europe.
The beer maker in Romania was 90 percent controlled by five players – Ursus Breweries, Heineken, Bergenbier, Tuborg and Romaqua, while small producers accounted for only 10 percent of the market.
What was the reasoning behind the Heineken – Bere Mures deal? The two main players were forced to play the game of market leaders, as an alternative to organic growth, and any strategic movement like M&A was a key determinant in their market positioning. The particular case of Bere-Mures acquisition was not necessarily a desired acquisition, but rather a reactive movement to the market tendencies.
In their turn, the Bere-Mures shareholders sold the company simply because it was the best moment of exiting the market.
On the other hand, the main players Ursus and Heineken, fighting for the first position, were forced to get involved in the process and make a decision. At the moment of the acquisition the market share difference between Heineken and its main competitor SAB Miller was only 1 percentage point, thus the fight of getting Bere-Mures that accounted for 6 percent of the market was very tight with both players negotiating in parallel with Bere-Mures. The improvement in competitive position is one of the main drivers of M&A transactions and this was also one of the main reasons behind the Bere-Mures acquisition.
During the process the two companies used a system called Total Product Management, which is very similar with Six Sigma concept, where Six Sigma can deal with a cultural change as well. “It was necessary to align all the processes of Bere-Mures with those of Heineken Romania,” said Vasile Ciurba, Member of the Board of Directors of Bere Mures.
Another aspect that was considered important was “the leadership style of the Romanian management of Bere-Mures, which was a direct leadership style, the decisions were taken much faster compared to Heineken Romania”. Two different national cultures – collectivist and individualistic ones, were merged into a new organizational culture through successful leadership.
There are various obstacles for international mergers and acquisitions and these can have a tremendous impact on the international workforce and global business operations if not addressed in the early stages.
Obstacles for international M&As in the cultural field include:
?attitudes and behaviour between the home and the host culture which can cause misunderstandings,
?client and employee dissatisfaction.
16 Ноя. 2011