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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. GAB’s net profit up on higher sales volume

Guinness Anchor Bhd’s (GAB) net profit climbed 28.9% year-on-year for the first full quarter since Heineken NV became its indirect majority shareholder in October last year.

In announcing its quarterly results to Bursa Malaysia, the malt liquor brewer said for the quarter ended March 31, its bottom line grew to RM50.85mil compared with a year earlier, spurred by higher sales, phasing of commercial spend and more effective commercial investment.

The company’s revenue, meanwhile, rose 4.9% to RM458.9mil from the same quarter in 2015 mainly due to higher sales volume and better brand mix on the backdrop of good festive performance during the Chinese New Year celebrations.

РуштGAB, which is in the process of changing its name to Heineken Malaysia Bhd, added that the underlying growth was partially off-set by the replacement of sales tax by the goods and services tax.

For the nine-month period to March 31, net profit jumped 20.3% to RM204.8mil on 2.75% higher revenue of RM1.39bil.

GAB attributed the better bottom line mainly to higher sales and improved cost efficiency in commercial spending. “Our robust commercial strategy backed by investments behind brands and effective channel executions have been yielding good results,” it said.

On its prospects, the company said the group continued to operate in a challenging environment with the recent increase in excise duties for alcohol products (effective since March 1) and subdued Malaysian consumer sentiment,

“The group will continue to focus on delivering on its key strategies for the financial year, whilst staying agile and adapting quickly to any changes in the environment. Following a resilient first nine months’ performance, the group remains confident that it will deliver a good performance for the financial year ending Dec 31,” GAB said.

In a statement, GAB managing director Hans Essaadi said its performance continued to show solid growth, credited to its effective long-term strategies targeting tailored core brands’ activation platforms, prodcut innovation, and operational efficiencies.

“We expect to maintain the momentum going forward by leveraging on Heineken’s strong global brands’ activation platforms, and supported by an efficient global supply chain which opens opportunities for cost savings through more strategic procurement,” he said.

GAB is cautious of increasing prices as this will push consumers away from duty-paid products to contraband.

Essaadi said that it was imperative for the beer and stout industry to continue to work with the Government to further develop a sustainable business eco-system for local businesses.

“We appreciate and fully-support the efforts of the Royal Malaysian Customs Department in combating contraband beer, which continues to lead to revenue loss to the industry and also represents significant loss in taxes to the Government,” he added.

To commemorate the company’s 50th Anniversary, on Jan 19 GAB declared a single-tier special dividend of 30 sen per 50 sen stock unit on top of the single-tier interim dividend of 20 sen unit giving a total dividend of 50 sen for the financial period ending Dec 31, payable on April 15.

14 Апр. 2016

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