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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.

Japan. Brewer Asahi tries to make splash in big pond

Japan's Asahi Group Holdings is diving into Europe in hopes of instantly enlarging its presence in an ever-consolidating global beer market.

The purveyor of Super Dry has offered to buy not one but four brewers and beer distributors owned by SABMiller for a total of 2.55 billion euros ($2.85 billion), it said on Wednesday.

The deal would see the makers of Peroni and Grolsch, based in Italy and the Netherlands, respectively, as well as London craft house Meantime Brewing and U.K. distributor Miller Brands go under Japanese ownership.

The sale is conditional on the completion of SABMiller's takeover by Anheuser-Busch InBev, the world's biggest beer company. Asahi seeks to negotiate a final agreement with InBev by summer and complete the transaction this year.

The Japanese brewer's foreign acquisitions have hitherto been concentrated in the Asia-Pacific region. Few have been as large as those made by Kirin Holdings and other domestic rivals seeking overseas growth. As a result, Asahi depends on the home market for nearly 90% of its earnings. With a global market share of just 1.2%, the company ranks 10th and risks becoming a perpetual underdog as the industry realigns.

Asahi is now reaching for a pair of venerable European brands to add some depth to the foreign side of its business. The continued success of Super Dry in Japan helps finance the acquisition, the biggest by a Japanese brewer since Kirin made Brazil's Schincariol wholly owned in 2011.

As a relative latecomer among Japanese brewers to the race for global market share, Asahi was drawn to the European market's stability and wide profit margins. Birra Peroni and Royal Grolsch have loyal followings. The size of Asahi's offer attests to the value it sees in both brewers' brands.

"The attraction was in the brands' local penetration," a senior Asahi executive said of the company's bid.

Peroni ranked as the top-selling brand in Italy in 2014, with a 17.4% share, Euromonitor said. It has extended its lead to more than double the sales of the No. 2 and No. 3 brands. Besides its light namesake brew, Birra Peroni offers the stronger Peroni Forte and Nastro Azzurro, which sells widely at cafes and restaurants.

With an emphasis on detail, Royal Grolsch has carved out a place in a Dutch market dominated by local-brew-turned-global-name Heineken. Grolsch, the third-ranked brand in the Netherlands, according to Euromonitor, is on the heavy side and rather bitter compared with the typical lager. It is sold in distinctive flip-top bottles in supermarkets and other retailers across Europe.

What the European beer market lacks in growth prospects compared with emerging economies it makes up for in size, at one-quarter of the global total, and high unit prices. There is less risk of becoming trapped in a race to the bottom in prices. Given the established market shares of Peroni and Grolsch, Asahi expects stable cash flows. It also will seek to tap local vendor networks to sell Super Dry in Europe, generating additional growth.

But rival Kirin can attest to the difficulty of making acquisitions pay off. Schincariol, now known as Brasil Kirin, has underperformed, resulting in a roughly 114 billion yen ($999 million) extraordinary loss last fiscal year, despite Kirin spending around 300 billion yen in the 2011 buyout.

Europe is farther from Asahi's oversight than its Australia-based Oceania business and has a vastly different corporate culture, presenting a challenge for management.

11 Фев. 2016

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