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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.

Instead of local Sabeco beer, will Vietnamese choose beer from Thailand?

Vietnamese, from economists to housewives, now are talking about the presence of Thai manufacturers in nearly all business fields. Thai products have been flooding the Vietnamese market, from footwear to toothpaste, from electric household-use appliances to cosmetics.

Experts have warned that more and more Thai goods will penetrate the domestic market, especially when they are backed by powerful distribution networks.

Thai Central Group has taken over Big C retail chain and joined forces with Nguyen Kim to buy Zalora, an online shopping system. A source said Thais now control 50 percent of the Vietnamese retail market.

Sources said it was highly possible that Vietnamese would also have Thai beer to drink in the future.

Sabeco has submitted to the government the plan to divest 53 percent of Sabeco’s stakes to reduce its ownership ratio from 89 percent to 36 percent.

The sources said more than 10 investors, both Vietnamese and foreign, have registered to buy Sabeco’s stakes. There are big names among Vietnamese potential investors, such as Saigon Securities Incorporated (SSI), Anh Duong Company and Duc Binh Group.

Meanwhile, Japanese Ashahi, Dutch Heineken, Thai ThaiBev and US SAB Miller are included on the list of foreign investors.

Of these, ThaiBev is believed to be the most active investor who shows strong desire to buy Sabeco’s stakes.

The information about Sabeco’s sale of 53 percent of stakes appeared in mass media first in November 2014. At that time, ThaiBev, which owns Chang beer and Oishi green tea brands, expressed its willingness to buy the lot of shares, valuing Sabeco at $2 billion.

At that moment, Sabeco held 46 percent of the domestic market share with two well-known brands – 333 and Bia Sai Gon.

In early 2015, ThaiBev once again voiced its wish to buy 40 percent of Sabeco’s stakes at $1 billion, which means total value of $2.5 billion for Sabeco. However, the deal failed as Sabeco thought the offered price was lower than its actual value.

Analysts commented that ThaiBev is attracted by the Vietnamese attractive market. With 90 million people, in the first four months of 2016, Vietnam consumed over 1 billion liters of beer, or 10 million liters a day.

If ThaiBev can acquire Sabeco, it would be able to have 40 percent of the domestic market.

The owner of ThaiBev proves to have good understanding about the Vietnamese market. He now holds 11 percent of Vinamilk through Fraser & Neave, a subsidiary, and runs 5-star hotel Melia Hanoi through TTC Land.

30 мая. 2016

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