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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.

India. UB board to keep faith in Vijay Mallya, for now

Says willing to come back to India if govt assured him safe passage

The United Breweries (UB) board would continue to maintain confidence in UB Chairman Vijay Mallya unless he was convicted or asked to step down to conform with regulatory requirements, said Kiran Mazumdar-Shaw, an old friend of Mallya and an independent board member at UB.

“If they are willing to offer me safe passage, I am willing to come and answer all questions,” Mazumdar-Shaw, recalled him as saying. “I feel I’m being victimised, so, right now, I’m in no position to return till I’m treated fairly.”

Mallya participated in the board meeting of UB via a video call late last week.

During the meeting, Mallya addressed concerns of the UB board, where he remains the chairman. The board development was first reported in The Economic Times.

UB, once controlled by Mallya, is now majority-owned by Dutch beer maker Heineken; he had sold sold stake to raise money to fund the now-defunct Kingfisher Airlines. The latter's failure also caused the collapse of Mallya’s liquor empire — he'd once controlled the largest spirits and beverages maker in the country. And, has been left owing about Rs 9,000 crore of loans to a group of banks.

Mallya, in self-exile in Britain, had proposed to participate in the Enforcement Directorate’s ongoing probe of him via video conferencing; the suggestion was rejected by the investigative agency.

He has apparently said he was being victimised and was willing to return for questioning if the government assured him ‘safe passage’.

Mallya is facing investigations by the ED and the Central Bureau of Investigation over money laundering charges on a Rs 900-crore loan raised from IDBI Bank for the defunct airline. The money was sanctioned despite an internal IDBI report to not advance the money.

The UBL board includes Frans Erik Eusman, the Asia-Pacific head of Heineken. Mallya told the board he was in a difficult position and due to this, could not return to India. He would keep them posted about new developments in the case against him. Mallya added that he continued trying to reach out to banks to settle his dues that amount to Rs 9,000 crore.

Questioned about how he was planning to settle the dues of employees of Kingfisher Airlines, Shaw quoted Mallya as saying he'd made an offer to settle these through United Breweries Holdings a while earlier but his bank accounts were frozen and the Karnataka high court had denied him the route.

Mallya left the country on March 2 and has had his passport revoked. The government of Britain has apparently advised Delhi to look at the extradition route to bring him back.

17 мая. 2016

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