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. ...
SABMiller plc Trading Update
Lager volumes for the third quarter were 2% ahead of the prior year and soft drinks volumes were 3% higher, both on an organic basis. Group revenue grew by 8% in the third quarter and group revenue per hectolitre was up by 5%, both on an organic constant currency basis, reflecting selective price increases and helped by improved brand mix in most regions. On a reported basis, including the effect of acquisitions and disposals, total volumes were up 6% and group revenue was up 17% compared with the third quarter of the prior year. Overall, financial performance for the quarter was in line with our expectations.
In Latin America the third quarter saw improved growth, with lager volumes up 6%. Colombia lager volumes grew by 7%, with a price increase taken at the start of December 2012. The growth was supported by the bulk pack introduced in the prior year as well as strong market execution during the peak period, with Aguila Light performing particularly well. In Peru, where we also took a price increase in December 2012, lager volumes were up 6% aided by expanded trade and fridge coverage. In Ecuador lager volumes declined by 1%, impacted by softer economic conditions and increased trade restrictions over the peak period. In Central America lager volumes were up 8%, with a notable performance in our premium brands in Panama. Lager volumes in Honduras were also boosted by growth in our premium brands, while in El Salvador the focus on affordable bulk packs and widened trade coverage resulted in double digit lager volume growth. Soft drinks volumes were up 5%, with increased availability and pack range extensions of our non-alcoholic malt brands.
In the third quarter Europe lager volumes were up 1% on an organic basis, with some beer markets impacted by depressed consumer confidence. Following an exceptionally strong first half, volumes in Poland were down 2% as the quarter was impacted by significantly weakened consumer sentiment although the overall beer market performed better than some other alcohol categories. Czech domestic volumes were down 11%, impacted by the continuing decline in the high value on-premise channel, in which we are more strongly represented, along with the impact of reduced promotional activity and the selective price increases in October 2012. Volumes grew by 23% in Romania driven by the continued strong performance of the new PET pack of economy brand Ciucas. Despite the challenging economic backdrop, volumes were up mid single digits in other European markets. Our associate, Anadolu Efes, delivered total volume growth of 5% on a pro forma basis in the third quarter, with a 7% pro forma decline in beer more than offset by growth in soft drinks of 24%.
MillerCoors domestic sales to retailers (STRs) declined 1.1% in the quarter on a trading day adjusted basis. Premium light brand volumes were down low single digits, as low single digit growth in Coors Light was offset by a mid single digit decline in Miller Lite. The Tenth and Blake division saw double digit growth driven by Leinenkugel’s and Blue Moon. Economy volumes were down low single digits. Domestic sales to wholesalers (STWs) were down 1.4% in the quarter compared with the prior year.
In Africa lager volumes grew by 4% on an organic basis, cycling double digit volume growth in the prior year. Most markets continued to grow strongly. Lager growth of 10% in Zambia continued to benefit from improved availability and distribution networks, further supported by the operation of the new brewhouse at Ndola from November 2012. Uganda returned to growth this quarter with lager volumes up 4% despite a slower economy. In Mozambique the affordable and mainstream segments continued to perform well helping deliver lager volume growth of 9%. Tanzania volumes continue to decline, down 13% for the quarter, following the excise related pricing. In Ghana, volumes grew by 9% driven by a strong performance by the Club brand while South Sudan continued to grow strongly. Lager volume growth moderated to 5% in Zimbabwe following a price increase taken in the quarter as a result of an unanticipated excise increase. Our associate Castel delivered lager volume growth of 5% on a pro forma basis including the combined Angola business. Soft drinks grew by 12% on an organic basis assisted by strong performances in Nigeria, Zambia and Ghana.
Lager volumes in Asia Pacific declined by 1% on an organic basis (which excludes Australia volumes altogether), largely as a result of subdued volumes in China, which declined 3%, due mainly to an exceptionally cold and wet winter across the country. In India, volumes grew by 18% with continued strong growth across the portfolio. There was an improving trend in lager volumes in our Australian business, with sales for the quarter 4% below the prior year on a pro forma basis, excluding the impact of the termination of some licensed brands, compared with an 8% decline in the previous six months. Total lager volumes, including discontinued brands, were 15% down. Flagship brand Victoria Bitter grew by 2%, the first quarter of growth in over 10 years, benefiting from the brand restoration programme and improved retail engagement. The integration programme in Australia remains ahead of schedule in respect of both synergy delivery and capability build.
In South Africa, lager volumes grew by 3% despite a challenging economic and trading environment. In the face of strong competition, the mainstream brand portfolio grew in aggregate with Castle Lager performing particularly well. Castle Lite, our principal premium offering, continued its strong performance with more than 20% growth. Targeted brand investments as well as improved retail execution and customer service continued to have a positive impact. Soft drinks volumes declined by 3% following a price increase on some packs in November 2012, partially offset by growth in still drinks.
On 6 December 2012, the group successfully completed an issue of €1,000 million 1.875% Notes due January 2020 under its US$3,000 million Guaranteed Euro Medium Term Note Programme. The net proceeds were used to repay in part the bank borrowings incurred to finance the acquisition of Foster’s in December 2011.
In January 2013, the group agreed to sell its non-core milk and juice business in Panama to La Cooperativa de Productores de Leche Dos Pinos R.L. (“Dos Pinos”) for a total cash consideration of US$86 million. Completion of the transaction is subject to approval from the Panamanian competition authority.
22 Янв. 2013