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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.

Vietnam. Will national brewers survive new taxes?

The tax rise from 1 January, 2016 affected the Vietnamese brewers’ financial position. Yet, this doesn’t seem to be the end of their problems. In April 2016, new Decree issued by the Ministry of Finance, was published. This law changes the tax basis of VAT and SCT.

Decree 108/2015 / ND-CP and Circular 195/2015 / TT-BTC will adversely affect beer producers by changing the tax basis for how the special consumption tax (SCT) is collected. In accordance to the new rules, the tax is levied not on the cost price of the parent company but on that of subsidiaries.

The tax basis change is aimed to regulate the activity and increase transparency of big companies, such as Sabeco, Habeco, and VBL, who by means of many subsidiaries and distributors reduced the final sum of the excise.

The growth of the tax burden can significantly aggravate already difficult financial situation of the brewers. For instance, Sabeco pretax profit over the first 4 months of this year fell by 27% to 1,215 bln dong. Sabeco’s management at the annual meeting arrived at the decision that the company’s profit decline is mainly connected to the increase of the special consumption tax from 1 January 2016.

Despite the fact that the revenues and sales volume went up, the excise rise from 50 to 55% was the main reason for the company’s profit plummeting.

The tax increase resulted in the retail price growth and, in the long run, led to sales decline particularly concerning the local producers , as their production is targeted at more economizing consumers.
For the same reason, the expected profit in 2016 is to decline by 5%, amounting to 3,436 bln dong.

12 Июл. 2016



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