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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.

Thailand. Can Thai Beverage Public Company Limited Defend its Fastest Growing Segment?

Thai Beverage Public Company Limited had enjoyed growth in both sales and profit in 2015.

Without a doubt, the company’s Beer segment was the standout performer for the year, with revenue and sales volume increasing by 22.5% and 17.5%, respectively. The segment had also gained market share at the expense of the Leo brand of beer, a leading competitor to Thai Beverage’s own Chang beer brand.

As a brief recap, Thai Beverage has four major business segments in total, namely, Spirits, Beer, Non-alcoholic Beverages, and Food. It operates mainly out of Thailand.

In a recent earnings briefing, analysts were curious to find out how Thai Beverage’s competitors – like Leo for instance – were reacting in terms of pricing. Prapakon Thongtheppairot, Senior Vice President Beer Product Group responded:

“I think it is hard to say what we would expect our competitor would react to when the competitor lose market share at this level. I have to say that we do respect their action, but we would welcome their price reductions greatly.”

Ueychai Tantha-Obhas, Executive Vice President Spirit Product Group, added his take as well on the potential price competition between Leo and Chang:

“Actually, there is some price reduction in the market already. Because of their kinda heavy trade deal. But I think Chang now is able to maintain, and sort of defend itself on the pricing pretty. Actually on our small bottles, we are at price parity or even higher than them. And we still see the volumes to grow.

We are not arrogant or anything but we are quite certain that the green bottle has lifted up a lot of our image and then the price gap is really, really narrow. We strongly believe that we can be at price parity very soon, without losing volume.”

Tantha-Ohbas also added his view about price differences:

“Actually, I don’t think so. If you look at 7-11, our big bottle is only THB 1 different. Our small bottle is now higher than Leo. The can is about the same. We are catching up very quickly. We haven’t seen any volume dented yet so far.”

The Beer segment made up over a quarter of Thai Beverage’s top-line in 2015. However, it only contributed 6.2% of the company’s net profit. This could be an interesting area of the company to observe for investors in the current year and beyond.

14 Мар. 2016

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