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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.

Carlsberg’s Q1 sales hit by China decline, currency headwind

Danish brewer Carlsberg A/S on Wednesday said sales fell more than expected in the first quarter due to decline in the Chinese market and foreign exchange fluctuation.

Sales fell 3 percent to 13.01 billion Danish crowns ($1.99 billion), missing the 13.18 billion crowns average of 14 analyst estimates compiled by Thomson Reuters. The negative impact from foreign exchange amounted to 5 percentage points, the brewer said.

Sales in Asia, one of Carlsberg's primary growth regions, fell 0.7 percent to 3.5 billion crowns. Analysts had expected growth of more than 2 percent.

"Beer market development in Asia was mixed with continued growth in markets such as India and Nepal while the Chinese market declined by 3-4 percent," Carlsberg said in a statement.

The brewer said sales volume grew in India and Nepal, and declined in China as a result of brewery closures.

Carlsberg's sales in Asia surpassed those in Eastern Europe last year but volume fell in China. Carlsberg decided to close seven breweries mainly in eastern China to focus on strongholds in the western part of the country.

"Volume development in Asia was weaker than expected," said analyst Morten Imsgard at Sydbank.

Carlsberg is the smallest of the world's four biggest brewers - soon to number three with the planned $100 billion takeover of SABMiller PLC by Anheuser Busch Inbev SA . Heineken NV is ranked third.

China is increasingly important for big international beer brands as growth elsewhere stalls. The country accounted for half of the industry's global volume increase last year.

Snow is China's top-selling beer with a market share of around 30 percent. AB Inbev said in March it would sell 49 percent of Snow to China Resources Beer Holdings Co Ltd as part of its planned takeover of SABMiller.

Since assuming his role a year ago, Carlsberg's Dutch Chief Executive Cees 't Hart has launched a cost-cutting programme and a strategy to boost growth, which has been subdued since the takeover of leading Russian beer brand Baltika AS in 2008.

The Danish brewer, which did not disclose first-quarter profit, said it expected low single-digit organic operating profit growth in 2016. It also said it expected a negative foreign exchange impact of 550 million crowns in 2016, rather than earlier guidance of 600 million.

($1 = 6.5367 Danish crowns)

11 мая. 2016

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