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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. Liquor companies lost $4 billion last year due to prohibition and GST exclusion

The combined market value of three largest companies — United Spirits, United Breweries and Radico Khaitan — crashed 30 per cent to Rs 55,392 crore from a year ago.

Nearly a dozen listed liquor companies in India have lost almost $4 billion, or a third of their market capitalisation, over the past year as their shares fell following a consistent decline in sales growth, prohibition in few states and exclusion of the segment from the GST ambit.

The combined market value of three largest companies — United Spirits, United Breweries and Radico Khaitan — crashed 30 per cent to Rs 55,392 crore from a year ago.

During the same period, the benchmark index Sensex fell marginally by 0.6 per cent.

"Prices of liquor brands went up by over 20 per cent due to taxes since more than two years. Then there are many states that banned alcohol which is impacting the estimated growth of the industry," said Aditya Joshi, consumer analyst with Nirmal Bang.

Since last year, Kerala, Bihar &Tamil Nadu that account for 20 per cent of India's alcohol consumption, banned liquor either completely or in a phased manner.

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India is the second-largest spirits-consuming country behind China. However, India's overall liquor consumption at 314 million cases grew less than a percent in 2015, compared with about 2 per cent a year ago, and more than 10 per cent between 2004 and 2014.

"We do not expect the regulatory environment to materially improve in the next two to three years and this will impede any broad improvement in operating profit margins for alcoholic beverage companies," said a report by Moody's.

While the long-term potential of India's alcoholic beverage market is backed by strong growth prospects in the economy, rising disposable incomes and an increasing social acceptance of alcohol, profitability has been a problem. Taxes on alcohol, on an average, account for about 16 per cent of the overall tax revenues of state governments. In India, states levy taxes on alcohol, while the Centre levies duties on imports.

States control manufacturing, distribution and pricing of liquor. Moreover, the liquor segment has been kept out of GST, a big concern in terms of margins, said analysts.

The industry, however, is still hopeful.

"Post GST, alcohol will be the biggest direct source of revenue to a state compared to second largest now. States have been very possessive about this stream of revenue which is best reflected in the fact that they made sure alcohol was not included in GST," said Amrit Kiran Singh, chairman at International Spirits & Wines Association of India that recently met Empowered Committee's chairman to discuss the matter.

12 Авг. 2016

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