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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.

Anheuser-Busch InBev, Modelo deal could pave way for SABMiller ‘mega-merger’

Anheuser-Busch InBev's US$20.1bn acquisition of Grupo Modelo is a “test case” in seeing how competition authorities would react to a “mega-merger” between the Belgium brewer and SABMiller, according to a new report.

The 81-page study – Global Beer: the Road to Monopoly – published by advocacy group the American Antitrust Institute, examines recent consolidation in the sector and assesses its future make-up. A-B InBev last week said it is “working proactively” with US regulators over the Modelo deal, having had approval in Canada, the UK and Mexico.

“The manner in which the DOJ (Department of Justice) treats the A-B InBev-Modelo transaction will provide clues to how it might treat a merger of the two leading suppliers of the US market and the world market,” the report says.

In July, A-B InBev's CEO, Carlos Brito, argued that the combination of A-B InBev and Modelo will make "no change" to the US beer market.

On the long-rumoured merger between A-B InBev and SABMiller, the report highlights that “it is becoming more difficult for beer companies to expand their businesses without entering new markets and absorbing existing facilities”.

It adds: “Some analysts see this as a good geographic match for the two companies. A-B InBev is strong in North America and China. SABMiller has greater international presence, particularly in high-growth emerging markets in Latin America and Africa.”

However, the report's author, Bernard Ascher, also flags one commentator's view that a combination of the “bitter rivals” would be like “a merger of Catholics and Protestants”.

"The two giant firms are keen rivals with different strategies and business cultures," Ascher says in the report. "Both firms, however, are publicly owned and need to show profits and growth to their stockholders at a time when it has become more difficult to grow without mergers and acquisitions”.

Ascher also suggests that further acquisitions of US craft brewers by larger companies is likely, following A-B InBev's purchase of Goose Island last year.

22 Ноя. 2012

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