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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.

China contributing to growth of SABMiller revenue

SABMiller PLC reported a fall in third-quarter revenue as the brewer was hit by foreign exchange volatility, although at constant currency, sales climbed strongly.

SABMiller ChinaThe world’s second-biggest brewer by sales after Anheuser-Busch InBev SA said net producer revenue—which accounts for excise and other taxes—fell 8% for the quarter, a sharper decline than the 5% the company logged a year earlier as SABMiller’s key operating currencies slid against the dollar.

At constant currencies, revenue rose 7% in the three months ended Dec. 31, compared with a 4% rise for the same period a year earlier.

A host of companies that have exposure to emerging markets and report results in U.S. dollars have been hurt lately, as many currencies have tumbled against the dollar. In the last few months of 2015, the South African rand, the Colombian peso, the Tanzanian shilling and the Angolan kwanza all depreciated by more than 20%, while the Polishzloty and the Kenyan shilling have depreciated by more than 10%, noted Berenberg analysts.

SABMiller is currently in the process of being acquired by AB InBev, with the deal expected to close in the second half of this year. The companies have moved to sell parts of SABMiller’s business in the U.S. and Europe to appease regulators, but haven’t yet said what they will do with SABMiller’s 49% stake in a joint venture in China that makes Snow, the world’s largest beer brand by volume.

SABMiller reported a 5% jump in net producer revenue at constant currency for the Asia Pacific region, with China contributing growth of 6% despite lower beverage volumes in the country.

For the quarter, SABMiller logged a 12% increase in Africa, with South Africa growing by 16% as volumes were helped by warm weather. The company recently said it would likely pull out of South Sudan because it can’t access enough foreign exchange to buy raw materials. On Thursday it said it is “evaluating our options.”

Net producer revenue rose 8% in Latin America, buoyed by growth in Colombia and Peru. However volumes of SABMiller’s nonalcoholic malt beverage, Pony Malta, declined following what SABMiller described as “an unfounded rumor that went viral on social media in October.” Media reports last year described a story allegedly circulated in Latin America on popular messenger service WhatsApp about a plant operator’s body being discovered in a Pony Malta storage tank.

In Europe, revenue climbed 6% helped by Romania, the U.K., Poland, the Czech Republic and Slovakia. SABMiller last month confirmed that AB InBev is exploring the sale of its premium brands Peroni and Grolsch and their associated businesses in Italy, the Netherlands and the U.K.

Sales in North America, where SABMiller operates through its MillerCoors joint venture with Molson Coors Brewing Co. fell 1%, a similar decline to a year earlier. Large brewers have struggled to grow sales in the U.S. as consumers have shunned big name lagers for craft beer and spirits.

Soft drinks volumes grew 8%, with double digit growth in Africa and what the company described as a “subdued performance” in Latin America.

21 Янв. 2016

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