Beer market of Russia 2018
- General market picture
- Foreign trade setting records
- Demography as challenge to branding
- Aged consumer
- Declining of youth brands
- Nostalgia on trend
- DIOT feels at home
- 5.0 Original is the new face of import
- Positions of Market Leaders
- Carlsberg Group
- AB InBev Efes
- AB InBev
Ukrainian beer market 2018
- Better than yesterday
- Performance by value
- Positions of Ukrainian brewers
The beer market dynamics in Russia is approaching zero, yet major brewers are divided into those who developed considerably in 2017 and those who considerably reduced their volumes. For instance, company Efes has managed to substantially extend their sales due to restrained pricing policy and activity in the modern trade. Heineken has also demonstrated an excellent performance promoted by significant increase of advertisement budgets launching a non-alcohol sort of the title brand and unusual activity in the economy market segment. Carlsberg and AB InBev have been focusing on margins and lost a market share of their inexpensive brands. Serious dependence on PET package and mass enthusiasm about Zhigulevskoe have negatively impacted the most of big regional brewers, that have been for the first time pressed by the leaders in the key sales channels, especially in Volga and Central regions. In the small business there has been a noticeable slowdown in appearing of new restaurant breweries, yet the number of craft breweries has been growing rapidly. In 2018, the beer market is likely to grow a little, while the share of AB InBev Efes may decrease due to the integration. ...
“Catalogue of Russian Beer Producers 2018” includes 1070 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft microbreweries.The catalogue includes 32 large breweries, 75 regional breweries, 693 industrial mini- and microbreweries as well as 270 restaurant breweries. ...
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