The trend of complication of Russian beer market is going on and in several directions at the same time. The range has got wider, the import and small segments are growing, namely craft beer, alcohol-free beer and special flavor beer. At the same time, all ex-mega brands and light lagers by Russian brewers are experiencing a decline of their shares. AB InBev Efes, Heineken, MBC and Pivzavod Trekhsosenskiy have exceeded the market, Carlsberg was developing slower than the market and Ochakovo as well as some other mid-sized breweries have been cutting down their volumes. To a big extent brewers’ performance was connected to their ability to reach agreement with networks, sacrifice their margin and enter new markets. Craft brewers are facing a serious danger of producers’ registration introduction – de facto licensing. ...
The global outlooks of the legal market of cannabis are excellent. It is possible to simultaneously imagine dry law repeal and craft brewing boom but not in one but in several consumer categories. For alcohol is contained in liquids and cannabis derivatives can be in three physical forms.The value of legal market of cannabis and its products can reach 10% of the world beer market in five years, and in 2030-2040 even reach the same scope provided the current rates of legalization and development of market infrastructure remain at the same level. Cannabinoids are actively integrating into the food industry from chewing gum to beverages deforming the pharmaceutical and alcohol markets, they influence the trends of healthy lifestyle and beauty. ...
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. ...
US cider market set to ‘explode’ – C&C Group
Shore Capital analyst Phil Carroll, in a note on a C&C investor day held in the UK, wrote that CEO Stephen Glancey and finance director Kenny Neison had spent four years stabilizing the plc. (key cider brands Bulmers, Magners) and were now moving on to the ‘transform’ phase.
Praising C&C’s “high quality” management team, Carroll calculated that the company had further acquisitive firepower – namely a war chest of over €100m ($130m) based on a balance sheet leverage level (debt ratio relative to total assets) of 1.5x that has the potential to rise to 2.5x.
“Arguably, there is already clear evidence of the commencement of this stage with the recent acquisitions (subject to competition authorities’ approval) of the [craft-based] Vermont Hard Cider Company (VHCC) and the Gleeson Group,” Carroll wrote.
Shore Capital said that C&C had a significant international opportunity, especially for its cider business, but added that Tennent’s beer also had strong potential as an export brand, and was already sold abroad in Italy, Spain, Ukraine, Canada and the US.
Specifically in the US, C&C management said that its US acquisitions provided access to a market that was about to ‘explode’, a trend the Shore Capital analyst agreed with.
“This looks to be confirmed, in our view, by the recent market data showing cider volumes up 57% in the past six months and more recently up 81% in the past month,” Carroll said.
Cannibalization ‘should’ be limited
Although cider only account for around 0.3% of the long alcoholic drinks market in the US, growth to 1% in the next five years would imply category CAGR of 36%, while a 3% share would imply 78%.
“Cider falls into the craft beer category where it is currently circa. 7% of the total US beer market. Data shows that in areas such as Seattle and Washington, craft beer accounts for circa. 20% of the market, so again, the potential for category growth looks very promising,” Carroll said.
“Furthermore, we also note that, generally, imported cider and domestic cider do not compete for the same customer, which should limit any cannibalization impact on C&C’s total US sales.”
C&C could also use VHCC to distribute Magners in the States, the analyst said, noting that the underlying valuation of VHCC did not account for the potential for filling the gap left by the end of a deal (in mid-August) whereby the firm distributed Heineken USA cider brand Strongbow.
“Profits from the international business are expected by C&C’s management to account for circa. 20% of group profits by the year end to February 2016,” the analysts said.
4 Дек. 2012