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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.

Magners set for China as C&C eyes Africa and Asia growth

C&C, the owner of the Bulmers/Magner cider brand and Tennents lager, will soon enter the Chinese market, after it signed a distribution deal for the world’s most populous country.

The company, which on Wednesday reported a fall of 10 per cent in operating profits in the year through February, is eyeing further growth in its international division, where sales rose last year by more than 12 per cent.

C&C continues to face challenges in its main markets of Ireland and Britain due to increased competition, and poor weather hitting cider sales. Net cider sales in Ireland fell 16 per cent in the year, partially due to the entry of Heineken’s Orchard Thieves brand into the market.

The company is setting its sights on major growth in Asia. C&C will announce in coming weeks it has signed a distribution deal with Vandergeeten, which has offices and Beijing and Shanghai. Vandergeeten has previously acted as Chinese distributor for western food and drinks companies such as Inbev.

The deal with C&C covers Magners and Tennents. C&C has also signed distribution deals in India and Thailand.

Mega-merger

Stephen Glancey, chief executive of C&C, said the drinks industry mega-merger between SAB Miller and AB Inbev was opening up opportunities for companies such as C&C, as the merged entity sheds some distributors.

C&C told investors yesterday it would see an improvement in earnings in the coming year, after sales fell 3 per cent to €662 million and the fall in profits, which had been well flagged.

New drink driving regulations in Scotland affected the business, while increased competition in Ireland and also in the US also presented challenges. The company cheered investors, however, by hiking its final dividend more than expected to 13.65 cents.

Mr Glancey said it would continue a progressive dividend policy as it looks to attract new investors to the group, especially those looking for yield.

Mr Glancey said that despite the challenges in the Irish market, it would continue to invest in pushing Bulmers in pubs. Mr Glancey said the brand’s sales in the Irish market are about six times that of Orchard Thieves.

In the US, it has signed a deal to hand over sales and distribution to Pabst.

The agreement will come fully into force in May. C&C remains on the lookout for bolt-on acquisitions in its home markets. Further afield, it has hired a new head of Africa, and is targeting growth across the region.

12 мая. 2016

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