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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 Resources Beer gains SABMiller stake in China Snow at bargain price

China Resources Beer will pay $1.6 billion to buy out SABMiller Plc's stake in their China Resources Snow Breweries venture, a much lower price than expected and sending shares in the state-backed firm soaring by a quarter in value.

The deal which gives China Resources Beer (Holdings) Co Ltd full control of Snow, the world's No. 1-selling beer by volume, is part of a series of divestments taking place to gain regulatory approval for Anheuser-Busch InBev $100 billion-plus takeover of rival SABMiller.

The sale of the 49 percent stake may help the group gain regulatory approval from Beijing.

Jeremy Yeo, an analyst at Mizuho Securities Asia said the price tag was significantly below the $3 billion to $3.5 billion he had expected.

"This news, in itself is positive for CR Beer's shareholders, from the standpoint of better-than-expected potential near-term EPS accretion," he wrote in a note to clients.

The Snow deal, which would make China Resources the largest brewer in the country with a 30 percent market share, is contingent on the AB InBev-SAB Miller deal going ahead. It is set to be settled in cash using a combination of funding options including debt and/or equity financing, China Resources Beer said in a statement.

Shares in China Resources Beer jumped 25 percent to their highest level in five years, regaining ground lost so far this year after the stock was dropped from the main constituents in the Hang Seng Index following a regular review by the index compiler.

Steven Leung, a sales director at UOB Kay Hian in Hong Kong, said the deal came earlier than the market had expected.

"The deal will definitely bring in some positive impact to the company, both in enhancing its market share and prospects in the local beer industry," Leung said.

China Resources accounted for 23.3 percent of the beer market in China in 2014, while Tsingtao Brewery ranked second at 18.4 percent, according to data from Euromonitor.

China Resources Beer changed its name from China Resources Enterprise after it announced a plan last April to sell all its non-beer assets to controlling shareholder China Resources (Holdings) Co for $3.6 billion.

China Resources Snow Breweries had a net asset value of HK$27.2 billion ($3.5 billion) at the end of last year, the statement said. Its net profit fell 21 percent to HK$1.51 billion in 2014 from a year earlier.

2 Мар. 2016

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