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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.

Beer Megadeal Said to Be Close to Winning Chinese Approval

Anheuser-Busch InBev NV’s $107 billion acquisition of SABMiller Plc is nearing Chinese approval after the companies agreed to divest the maker of Snow beer, the world’s top-selling brand, according to people familiar with the matter.

Approvals for both transactions could come as soon as this month based on typical review timelines, clearing one of the final hurdles for the biggest beer deal in history.

Though China’s Ministry of Commerce may attach some conditions to the deal, including the Snow divestiture, regulators see no major hurdles, said one of the people, asking not to be identified because the deliberations are private. Some local beermakers told the ministry that they don’t object to the takeover as it won’t have a big impact on the Chinese market, another person said.

SABMiller shares closed up 3 pence to 4,306 pence in London, erasing an earlier decline. AB InBev shares fell less than 1 percent to 114.95 euros in Belgium.

The merged company would redraw control of the global beer market. Following divestitures, the deal will keep Budweiser, Beck’s and Stella Artois under AB InBev’s roof, while ceding control of brands including Miller in the U.S. and Peroni and Pilsner Urquell in Europe.

In China, the companies agreed to sell SABMiller’s 49 percent stake in its joint venture with China Resources Beer (Holdings) Co., which controls Snow beer, back to its partner.

Deals Unraveled

In clearing these global hurdles, the beer mega deal contrasts with other big proposed tie-ups that unraveled amid antitrust scrutiny, including Halliburton Co.’s failed bid for Baker Hughes Inc., Staples Inc.’s foiled merger with Office Depot Inc. and General Electric Co.’s decision to abandon the sale of its appliance business to Electrolux AB. In the beer deal, the sides were aggressive in offering divestitures from the start --- including the plan for SABMiller to sell Snow -- which may have ultimately helped reduce regulatory resistance, antitrust lawyers have said.

The U.S. Justice Department may clear the tie-up as soon as this month, people familiar with the process have told Bloomberg News. South Africa has yet to bless the deal, which has hit some obstacles amid protests from local unions.

Share in china

AB InBev and SABMiller declined to comment. China Resources and the commerce ministry didn’t immediately respond to queries.

The merger plan, which the two companies reached in November as a way to gain access to emerging markets, has already won antitrust approval in more than a dozen jurisdictions, including the European Union.

In March, China Resources announced it would buy out SABMiller’s stake in their Chinese venture for $1.6 billion. That deal is also nearing approval from China’s commerce ministry, the people said.

Favorite Beer

In the U.S., AB InBev has agreed to sell SABMiller’s stake in the MillerCoors joint venture. It may also have to agree to further conditions related to beer distribution, according to people familiar with the matter. Smaller brewers and wholesalers want officials to restrict AB InBev’s control and influence over how beer gets on to store shelves, according to the people.

9 Июн. 2016

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