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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.

SABMiller says a minimum price for alcohol will hit low-income, responsible drinkers

The introduction of a minimum price for alcohol will unfairly hit responsible drinkers in low-income families, while doing nothing to change the drinking habits of problem drinkers, SABMiller plc, one of the world’s leading brewers, said today (Wednesday 28 November 2012) in response to the launch of the consultation on the UK Government’s alcohol strategy.

Pointing to statistics which show that high-income consumers are the most likely to regularly drink more alcohol than the Government’s recommended weekly limit, SABMiller said a minimum price of 45p per unit would impact on lower-income responsible drinkers more.

Research looking at different types of drinker shows that:

The bottom 30 percent of households according to income (up to ?14,378 a year), have the greatest proportion of moderate drinkers1. This group tends to buy cheaper products and will be most affected by minimum pricing.
The top 20 percent (?61,958+ a year) have the greatest proportion of hazardous and harmful drinkers, yet this group spends, on average, over ?0.70 per unit of alcohol2.
The heaviest drinkers are the least responsive to changes in price3. A minimum price of 45p would lead a hazardous drinker to reduce their intake by roughly a pint of beer a week (2.7 units).
Hazardous drinkers are defined by the Government as men who drink 22-50 units a week and women who drink 15-35 units, while harmful drinkers are defined as those who drink over 50 units (for men) and over 35 (for women).

SABMiller urges the Government to look at better targeted policies which would genuinely help harmful and hazardous drinkers. Mike Short, SABMiller’s Senior Vice President of Industry Affairs, said:

“There’s a lot in the Government’s alcohol strategy which we agree with, for example local authorities being given more power to deal with anti-social drinking and a greater focus on targeted prevention programmes. As a brewer we also recognise the importance of our role in promoting sensible drinking, particularly when it comes to the responsible marketing of our products. However, we cannot support an unfair and ineffective policy which will be yet another tax on low-income responsible drinkers.”

In addition to concerns about its effectiveness as a policy, SABMiller also believes that government intervention in the market will have a number of unintended consequences for consumers. Gary Haigh, Managing Director of Miller Brands, SABMiller’s subsidiary company in the UK, said:

“If minimum pricing comes in, consumers, particularly those with a limited budget, will be faced with far less choice when they look at the supermarket shelves. ‘Own label’ products are likely to disappear because they can’t compete at the same price against branded products and producers who import into the UK could pull out because it’s no longer a competitive market. It could also make things even worse for our great British pub heritage. It’s already been badly affected by the trend towards at-home drinking and if people have a set budget they’ll have less to spend in the pub.”

ENDS

Analysis by the Centre for Business and Economics Research using the Office of National Statistics General Lifestyle and Family Expenditure surveys.
Ibid
London Economics, Differential Price Responsiveness among Drinker Types (a review of all public-health funded research published on the subject)

29 Ноя. 2012

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