Russia: Positions of Brewing CompaniesThe 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 brandsIn 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 2019During 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.
The trend of complication of Russian beer market is going on and in several directions at the same time. The range has got wider, the import and small segments are growing, namely craft beer, alcohol-free beer and special flavor beer. At the same time, all ex-mega brands and light lagers by Russian brewers are experiencing a decline of their shares. AB InBev Efes, Heineken, MBC and Pivzavod Trekhsosenskiy have exceeded the market, Carlsberg was developing slower than the market and Ochakovo as well as some other mid-sized breweries have been cutting down their volumes. To a big extent brewers’ performance was connected to their ability to reach agreement with networks, sacrifice their margin and enter new markets. Craft brewers are facing a serious danger of producers’ registration introduction – de facto licensing. ...
The global outlooks of the legal market of cannabis are excellent. It is possible to simultaneously imagine dry law repeal and craft brewing boom but not in one but in several consumer categories. For alcohol is contained in liquids and cannabis derivatives can be in three physical forms.The value of legal market of cannabis and its products can reach 10% of the world beer market in five years, and in 2030-2040 even reach the same scope provided the current rates of legalization and development of market infrastructure remain at the same level. Cannabinoids are actively integrating into the food industry from chewing gum to beverages deforming the pharmaceutical and alcohol markets, they influence the trends of healthy lifestyle and beauty. ...
Vietnam’s state-owned top brewer Sabeco to sell 53% at one go, deal valued upwards of $1b
The sale will only be finalised after government approval.
If the proposal goes through, It will constitute yet another attempt by Saigon Beer, Alcohol and Beverage Corporation at privatisation as the company has been exploring the possibility of bringing in external investors for a while now.
In May 2015, DEALSTREETASIA reported that Sabeco was planning to divest state holding to a minority 36 per cent, and had added that nine firms had already submitted bids to buy a stake in it. The report also said that the deal would be upwards of $1 billion.
Prior to that, this portal had reported that several foreign players, including Thai Beverage Group, Singha Corporation – another Thai brewer, Japan’s Asahi Breweries, Heineken (which already holds five per cent stake in the Vietnamese state-owned beer producer) and US-based SAB Miller, were examining potential investments in Sabeco.
Thaibev’s billionaire owner Charoen Sirivadhanabhakdi had even valued Sabeco at $2.4 billion.
Earlier Vietnam’s Ministry of Industry and Trade – which represents the government ownership in Sabeco – was looking at two different options – to sell the stake either in a single tranche, worth about $1 billion, to reduce the government’s holding in it from 89.59 per cent to 36 per cent; or to divest the stake in two batches of 40 per cent and 13.59 per cent.
“Normally when a company itself proposes a divestment plan, the execution will follow that proposal,” said an analyst with a top Vietnamese securities firm, who declined to be named.
Meanwhile, the Vietnam Association of Financial Investors (VAFI) has proposed that the government, which currently holds an 89.6 per cent stake in the company, should exit the brewer and earn around $3 billion.
Sabeco holds 46 per cent market share, according to the VnExpress.net. Its turnover has been increasing over the past years, having reached VND8.1 trillion (up 2 per cent) and VND3.4 trillion (up 25 per cent) in 2015.
In addition, Sabeco is investing in 26 subsidiaries and affiliates operating in various sectors, from beverage processing, packaging and labelling to mechanics and hydropower.
As the company looks to auction the 53 per cent stake in one tranche, the buyer will gain control in Vietnam’s largest beverage firm and its production and distribution chain across the country. If a foreign corporation wins the bid, competition in the Asia’s fifth largest beer market will become extensively fierce.
While Sabeco is still holding its number one position in the local market, foreign beer makers have rolled out their own play. Heineken – which has a 5% stake in Sabeco – achieved the second rank in terms of beer consumption last year, and Japan’s Sapporo, which has bought out the local joint venture.
Singha, also reportedly keen on buying Sabeco, expanded into Vietnam through a $1.1 billion acquisition of Masan Consumer and Masan Brewery, two F&B subsidiaries of Masan Group.
Sabeco former chairman Phan Dang Tuat had earlier said that the company did not intend to sell majority stake to foreign investors.
“We should be cautious when working with large firms. Cooperation in the same industry can be beneficial, but the threat is that we might soon lose our brand. By all means, annexationism always exists in the business method of large companies,” Tuat had told reporters last year.
The securities analyst, quoted above, was neutral about the buyer being a local or foreign entity.
The sale will be through an auction, which means whoever pays higher gets the deal, this analyst added. If one were to go by VAFI’s valuation of Sabeco, then the deal to sell a majority stake in the brewer will be worth over $1.5 billion.
VAFI also urged Sabeco to list for a better corporate management. “Sabeco was a much bigger company than Vinamilk 10 years ago, when its profits almost doubled Vinamilk’s profits. But the situation has changed. Now Vinamilk’s profit is three times higher,” the association vice president Nguyen Hoang Hai said.
“Sabeco and Habeco (another state-owned beer firm) have seen slow growth despite their potential,” he added.
Making Sabeco a fully private company and listing its shares will boost the company’s management, and will also supply a source to the local stock market, according to the association.
Vinamilk has now become the largest listed company by market capitalisation. It is a favourite portfolio stock of a spate of foreign companies and funds such as F&N Dairy Investment Pte Ltd, Deutsche Bank and Norges Bank, among others.
Meanwhile, it has been more than eight years since Sabeco’s IPO (where Dutch brewer Heineken acquired a 5 percent stake), but the company has not been listed yet, and this is in violation of Vietnam’s latest rules that mandate “IPO-ed” businesses to list their shares within a year.
“It is time to get rid of individual interest to target business transparency, and use the divestment proceeds for bigger causes,” the VAFI said.
17 мая. 2016