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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.

Malaysia. Guinness Anchor Bhd cautious about hiking prices in near term

Brewery Guinness Anchor Bhd (GAB) said it will be cautious not to hike prices of its products further in the near term on pressures of a higher inflation rate in the second half of 2016.

The market leader in the brewery business had adjusted the prices of its product lines as soon as the new tax structure kicked in on March 1 when the Government replaced the malt liquor’s tax struture, which led to a hike in the price of beer by between 8% to 10%.

Asked whether another price hike was likely to take place after the Anti-Profiteering Act period ended on June 30, managing director Hans Essaadi said with consumer sentiment in its 10-year low, it would be wary.

“Hiking prices during this time would not make sense and we are cautious. But, we also run a commercial business where we are diluting our margins.

“It is something that we need to look at, as we won’t be able to do any price hike until a certain period of time,” said Essaadi after a tour of the brewery yesterday in conjunction with its Golden Jubilee.

The procurement agreement with Heineken NV had benefitted GAB, he said, adding that it was able to purchase raw materials at lower price.

“The procurement ensures pricing are stable,” he added.

The tour was also held in line with GAB’s rebranding exercise just after Dutch brewer Heineken NV became the major shareholder of GAB in October last year.

Heineken holds a 100% stake in GAPL Pte Ltd, which in turn owns a 51% interest in GAB.

Upon shareholders’ approval at an EGM to be held on April 20, GAB will be known as Heineken Malaysia Bhd.

Meanwhile, UOBKayHian (UOBKH), in its note, believed that consumers were able to accept the price hike of only 3% to 5%.

Although brewers had partially absorbed the excise duty hike on malt liquor with high alcohol content of more than 6%, the financial impact was modest as these beverages account for less than 10% of the brewer’s sales volume, according to UOBKH.

“Depending on the sales volume and competitive dynamics, the industry would have sufficient pricing power to implement a modest price hike after June 30. Brewers are likely to pass on costs, hence restoring their margins,” it said.

But, Essaadi, still remained leery on the outlook, stating that it hoped to do better this year and perhaps pick up some market share. “We will be having more brand portfolios, but we will also take of those that are not doing well,” he noted.

1 Апр. 2016

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