Russia: Positions of Brewing CompaniesThe 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 brandsIn 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 2019During 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.
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. ...
AB InBev Said to Bar Modelo Plant Sale in Takeover Bid
Any insistence by U.S. antitrust regulators for divestiture of the plant, located near Piedras Negras, Mexico, would be a dealbreaker, either triggering litigation or causing AB InBev to walk away from the transaction, said the people, who asked not to be named because the matter isn’t public.
Talks between the companies and the Justice Department, which is reviewing whether the transaction would hurt competition in the domestic beer market, center on how to structure a long-term supply and pricing agreement for importing Modelo’s brands to the U.S., three people familiar with the matter said Jan. 15. The department hasn’t demanded sales of production assets or outsourcing of production to third parties, the people said.
The antitrust division is examining a clause in the merger contract between AB Inbev and Modelo that would allow AB InBev after 10 years to buy back Modelo’s current U.S. importer, Crown Imports LLC. Under the proposed deal, control of Crown would be sold to Constellation (STZ) Brands Inc.
Competitors have argued the buy-back option should be removed to ensure the importer remains independent, said another person familiar with the matter.
AB InBev. Modelo
Marianne Amssoms, a spokeswoman for AB InBev, and Jennifer Shelley, a spokeswoman for Modelo, Mexico’s largest beer maker, declined to comment.
AB InBev agreed in June to buy the 50 percent of Modelo it doesn’t own already in a transaction that would marry Budweiser with brands including Corona Extra, Negra Modelo and Pacifico. Constellation plans to buy Modelo’s stake in Crown, the U.S. distribution joint venture of the two companies, for $1.85 billion.
Modelo invested about $600 million in the Piedras Negras plant, which it describes as “the most modern in the world” in its 2010 annual report. Located close to the border with Texas, the facility has a production capacity of 10 million hectoliters a year, according to company statements. Modelo spokeswoman Shelley declined to disclose the company’s current valuation of the plant.
Under terms of the merger contract, AB InBev is required to show “reasonable best efforts” to obtain the required antitrust approvals short of selling assets of more than $3 billion or any other action that would devalue the company by that amount, according to the brewer’s SEC filing. In that event, AB InBev may have to pay Modelo a termination fee equal to $650 million, according to terms of the contract reported in the filing.
Small brewers are concerned that the merger could hurt their access to the market through wholesalers and retailers, said Dan Kopman, chief executive officer of The Saint Louis Brewery, an independent beermaker in St. Louis that produces Schlafly Beer.
“It’s going to be most critical where you have high market share for both Modelo and AB InBev,” such as southern California, south Texas and Chicago, Kopman said. The related proposed purchase of Modelo’s 50 percent stake in Crown Imports by Constellation won’t reduce AB InBev’s influence over its newly acquired brands, Kopman said.
“I don’t see that as a true separation,” Kopman said. “AB InBev is not going to allow Constellation to go off on a rogue mission in how they market Corona.”
The agreement to sell control of Crown would prevent AB InBev from having influence in marketing, distributing and pricing Modelo’s beers in the U.S., Constellation Chief Executive Officer Rob Sands said in an interview June 29. Constellation would become the sole U.S. importer of Modelo’s brands. The deal also gives Crown more flexibility to import other non-Mexican brands, Sands said.
AB InBev has the right to buy back the entire Crown business every 10 years at a multiple of 13 times earnings before interest and tax, according to the merger agreement. The clause is subject to regulatory approval.
Mexico’s antitrust regulator approved the transaction in November. AB InBev, which is based in Leuven, Belgium, controls 18 percent of the global beer market. Its Bud Light brand is the top selling U.S. beer and Modelo’s Corona is the top import.
Grupo Modelo, based in Mexico City, ranked fourth in the North American beer market in 2011 with a 5.5 percent share by volume, according to Bloomberg Industries and Euromonitor International. AB InBev ranked No. 1 with a 48 percent share of the market, far ahead of No. 2 Molson Coors Brewing Co. (TAP), which had 16 percent market share during the same period.
17 Янв. 2013