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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.

Vietnam has high tax on dairy products, low tax on beer & liquor

Most experts, when asked about the tax increases for beer, liquor and cigarettes, said they advocate the plan, especially if the government tries to collect more from domestic taxes to increase budget revenue.

The Ministry of Finance’s reports all show a constrained state budget, which has forced the ministry to borrow more money for the government’s spending.

Le Dang Doanh, a renowned economist, who was head of the Central Institute of Economic Management (CIEM), affirmed that raising luxury tax on products is a reasonable decision.

He said the products, which may harm people’s health, are not taxed high enough to discourage the consumption. Meanwhile, essential goods, including dairy products, necessary to people are taxed too highly.

“It is necessary to raise tax so as to help ease the burden of diseases caused by harmful products,” Doanh said, adding that Vietnam should follow other countries in this issue.

Sweden, for example, imposes very high tax on beer and liquor, and Swedish citizens have to show identity cards when buying the products.

Nguyen Tuan Lam from the WHO (World Health Organization) Office in Vietnam commented that raising luxury tax would be the ‘win-win’ solution for both the government and people.

“The government would be able to collect more money to cover its spending, while people would be able to avoid diseases,” he said, adding that the experience from Thailand and the Philippines shows this would be a right decision.

A lot of non-government organizations including RTCCD (Hanoi Research and Training Center for Community Development), VPHA (Vietnam Public Health Association) and NGO-IC (The Non-governmental Organizations-Information Center) sent official documents to the National Assembly, expressing their support to the plan on raising luxury tax on beer, liquor and cigarettes.

According to Ha Huy Tuan, deputy chair of the National Assembly’s Finance Supervision Council, luxury tax collection is an important contribution to the state budget revenue which makes up 7 percent of total revenue.

Meanwhile, the revenue from from beer, liquor and cigarette accounts for 65 percent of total revenue from luxury tax.

An analyst estimated that with the luxury tax changes, the retail prices of beer, liquor and cigarettes would increase by 2-7 percent.

The National Institute of Nutrition (NIN) has repeatedly recommended the strengthening of the use of dairy products.

According to Dr Le Bach Mai, Vietnamese calcium dietary has been unchanged in the last 30 years at 500-540 mg a day, just 50-60 percent of the recommended level.

Vietnamese dairy product consumption is modest, at 11 liters per head per annum, equal to half of Thai consumption.

25 Апр. 2016

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