The trend of complication of Russian beer market is going on and in several directions at the same time. The range has got wider, the import and small segments are growing, namely craft beer, alcohol-free beer and special flavor beer. At the same time, all ex-mega brands and light lagers by Russian brewers are experiencing a decline of their shares. AB InBev Efes, Heineken, MBC and Pivzavod Trekhsosenskiy have exceeded the market, Carlsberg was developing slower than the market and Ochakovo as well as some other mid-sized breweries have been cutting down their volumes. To a big extent brewers’ performance was connected to their ability to reach agreement with networks, sacrifice their margin and enter new markets. Craft brewers are facing a serious danger of producers’ registration introduction – de facto licensing. ...
The global outlooks of the legal market of cannabis are excellent. It is possible to simultaneously imagine dry law repeal and craft brewing boom but not in one but in several consumer categories. For alcohol is contained in liquids and cannabis derivatives can be in three physical forms.The value of legal market of cannabis and its products can reach 10% of the world beer market in five years, and in 2030-2040 even reach the same scope provided the current rates of legalization and development of market infrastructure remain at the same level. Cannabinoids are actively integrating into the food industry from chewing gum to beverages deforming the pharmaceutical and alcohol markets, they influence the trends of healthy lifestyle and beauty. ...
Beer market of Kazakhstan acquired both traits of East European countries and South Eastern Asia taking a transitional position between them by many criteria and consumption style. Yet there is a positive trend in beer production which differs Kazakhstan from most of the neighboring countries. The market has remained consolidated in the hands of two international players because of its small size. However, it faces dynamic processes such as fast growth of draft beer sales, up and downs of regional companies and Carlsberg Group’s ultimate expansion. Excessive mainstream segment has declined over the recent years, yet, Zhigulevskoe and national brands with regional links have yielded their positions to a range of new products. In our review special attention was paid to regional analysis of the markets. In 14 regions of Kazakhstan we compared the companies’ positions, the market price segmentation and DIOT channel development. Besides we have compared the beer market of Kazakhstan to neighboring countries. ...
India. Vijay Mallya’s craft beer firm brews fresh funding in US
California-based Mendocino Brewing Company, which sells a number of beer brands including Kingfisher in the US, has got Mallya as its Chairman and is owned by UB Group through a complex shareholding structure.
In a regulatory filing with the US markets regulator SEC (Securities and Exchange Commission), Mendocino has disclosed having issued a ‘promissory note’ to Delaware-based Catamaran Services, Inc, in the principal amount of $ 325,000 (over Rs 2 crore).
It further said Mendocino had earlier also issued four promissory notes to Catamaran between January 2014 and June 2015, for principal amounts of $ 500,000 each.
Catamaran’s sole shareholder is an entity named Catamaran Holdings, Ltd, which interestingly “has directors in common with Inversiones Mirabel SA”, one of the major shareholders of Mendocino.
The indirect beneficial owner of Inversiones is United Breweries Holdings Limited (UBHL), making UBHL the indirect majority shareholder of Mendocino. Mallya chairs the boards of UBHL as well as Mendocino.
Mendocino further said it has also received a letter from Illinois-based MB Financial Bank permitting the company to obtain loans up to $ 400,000.
As per the terms of the promissory note, Mendocino has promised to pay the principal sum of $ 325,000 with accrued interest to Catamaran within 6 months, subject to the receipt by the company of a bridge loan from its majority shareholder.
This repayment is subject to the shareholder loan amount being sufficient either to pay the note through ‘Permitted Payments’, or to pay both the note and certain existing obligations of the company to MB Financial Bank.
The ‘Permitted Payments’ on the note are payments made from the portion of a Shareholder Loan that is in excess of $ 600,000, the filing further said.
If the company is not able to satisfy its obligations on the note within six months, the note will get automatically extended for additional six months terms “until a Shareholder Loan sufficient to satisfy the note is received or the note is otherwise paid.”
A major controversy has broken out back in India ever since Mallya left the country amid growing clamour for recovery of dues totalling over Rs 9,000 crore of the long-grounded Kingfisher Airlines in outstanding loans and interest amount.
Mallya and his group firms are also being probed by multiple regulators and agencies including Sebi, Enforcement Directorate and SFIO (Serious Fraud Investigations Office).
Under terms of the promissory note, interest will accrue from the date of the note on the unpaid principal at a rate equal to the lesser of 1.5 per cent per annum above the prime rate offered from time to time by the Bank of America Corporation, or 10 per cent per annum, until the principal is fully paid.
The note can be prepaid without penalty at the option of the company, but can not be amended without the prior written consent of MB Financial.
In another filing with SEC, Mendocino said it was unable to timely file its Annual Report on Form 10-K for the period ended December 31, 2015 “due to delays experienced in the collection of certain financial information about the Registrant’s UK subsidiaries required to be included in the Annual Report”.
“The Registrant intends to file the Annual Report with the Securities and Exchange Commission within the 15-day extension period…” it added.
In its last annual report for 2014, Mendocino had disclosed having paid Mallya a total amount of $ 267,700 (about Rs 1.8 crore). This included $ 120,000 per year for services rendered as Mendocino Chairman and $ 147,700 by a subsidiary United Breweries International (UK) Ltd for promoting its “products in the Foreign Territory outside the United Kingdom”.
The payment to him during 2015 would be known after the latest annual report is filed later this month.
Mallya became Mendocino’s Chairman in October 1997 and also served as its CEO until January 2005.
Mendocino Brewing Company was founded way back in 1983 and it caught Mallya’s interest in 1997.
Today it claims to produce over ’20 nationally recognisable labels’, including Red Tail Ale, and the company says it has “trekked from a 1983 production of about 400 barrels (5500 case equivalent) to the current production of about 75,000 barrels (over one million cases)”.
Its North American operations primarily consist of brewing and marketing proprietary craft beers. Its foreign operations are conducted through wholly-owned subsidiary United Breweries International (UK) Ltd and a step-down unit Kingfisher Beer Europe Ltd.
4 Апр. 2016