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Russia: Positions of Brewing Companies

The 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 brands

In 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 2019

During 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.

Global Beer Wars

It's hard work growing an economy, and at the end of the day, the only way to unwind after all that hard work is to throw back an icy cold, watered-down macrobrew. That is exactly why the world's biggest beer companies are focusing resources on emerging economies. All right, there may be some other reasons as well, but the important part is that these big companies are making moves.

East Africa
As the world's largest energy companies continue to make discoveries off the eastern coast of Africa, they will soon have several choices of refreshment after a long day of drilling.

Diageo (NYSE: DEO ) and SAB Miller have both closed deals in East Africa and are poised to duke it out over market share in Uganda, Kenya, and Tanzania. Diageo has invested $1 billion in Africa over the last four years. The company's Kenyan subsidiary, East African Breweries, recorded a first-half profit increase of 17%. Sales for the unit were up 36%.

SAB Miller invested $80 million to build a new beer plant and double the capacity of its Nile Brewing subsidiary. It has also invested $1.75 billion in Africa over the last four years.

Eastern Europe
Many companies are making an effort to expand their presence in Eastern Europe before this summer's Euro 2012 soccer tournament in June, and Anheuser-Busch InBev (NYSE: BUD ) is no exception. The company plans to open six to 10 new locations for its Belgian Beer Cafe franchise in Poland, where half of the games will be played.

Anheuser-Busch also has its eye on a pricey Czech lager. Competition is stiff for StarBev, the brewer of Staropramen, as SABMiller (SBMRY.PK), Heineken (HINKY.PK), and Molson Coors (NYSE: TAP ) are expected to look at the $3 billion operation as well.

An interesting point here is that Anheuser-Busch actually used to own StarBev and sold it to CVC Capital Partners in 2009. The potentially lucrative developing economies in Eastern Europe may prove to be a strong enough siren song for the beverage giant to repurchase the company.

Though China's economy is huge compared to the examples above, it will continue to grow at a breakneck pace. As a result, Anheuser-Busch is competing with the likes of SABMiller, Tsingtao, and China Resources Enterprise to purchase Chinese company Kingway Brewery Holdings.

Kingway is the third-largest player in Guangdong province, one of the wealthiest in China. The brand holds a 15% market share there, and the unit is expected to sell for $550 million.

Foolish takeaway
China is the world's largest beer consumer, but I like the East African play the best. There isn't as much competition, and those economies could really take off as energy investments pour into the region in the next five years.

29 Фев. 2012



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