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3-2019

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.

Will a big brewery be the price for A-B’s Modelo deal?

Rumblings continue around Anheuser-Busch InBev's planned buyout of Mexican brewer Grupo Modelo, with some saying the price to make the deal to go through might be a very large brewery.

Antitrust newsletter The Capitol Report last week wrote the U.S. Dept. of Justice may force A-B InBev to sell off Modelo's giant Piedras Negras brewery, to appease its concerns about unfair competition in the wake of the deal.

Capitol Report cited unnamed antitrust attorneys and beer industry sources. And neither the Justice Department nor ABI have been commenting on the $20 billion merger, which is set to close in the first quarter of 2013. But antitrust concerns have dogged the deal since its announcement in June, and were a big reason why A-B handed off U.S. distribution rights for Corona and other Modelo brews to Constellation Brands.

But simply giving up rights to sell beer may not be enough to pass federal muster. A-B would still make the stuff and could, theoretically, influence its price.

Selling off the Piedras Negras brewery — which has enough capacity to fill much of Corona's U.S. demand and sits just minutes south of the border — would add yet another layer of separation between A-B's Modelo products and the U.S. market.

It's unclear who the buyer would be, but the arrangement would resemble DOJ's orders in 2008, when InBev agreed to sell off rights to its Canadian brand Labatt in the U.S. market in order to acquire A-B.

Selling off the U.S. rights to Modelo — which is the third best-selling brewer in the country with nearly 6 percent of the U.S. beer market — would obviously be a bigger thing. But given ABI's global ambitions for Corona, analysts say giving up the U.S. market may well be a deal they're willing to make.

"We do not view this as a deal-breaker," wrote Bernstein Research analyst Trevor Stirling in a note on the topic.

Meanwhile, the principals in the deal are still sounding an optimistic note. Constellation chief executive Rob Sands was upbeat Monday at a conference held by trade publication Beer Marketer's Insights, saying the process "is going entirely as expected." When asked if "major concession" - i.e. selling a brewery - would be necessary to close the deal, according to BMI, Sands said: "We don't anticipate that that will be necessary."

14 Ноя. 2012

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