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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.

The uneven development of Carlsberg Asian markets in 1H2016: strong growth in India and Laos with 8% volumes decline in China

Carlsberg says its operating profit in Asia is increasing due to premium propositions growth.

According to the first-half results, Asia region continued to deliver solid organic revenue growth (+4%) thanks to a strong 7% price/mix and despite a negative volume development in China. In addition, organic operating profit growth was a healthy 6%.

^18B4991D9CC81F0E3F367DCCCCDF601D501AFE8989BC296373^pimgpsh_fullsize_distrNet revenue in Asia grew organically by 4% as a result of 7% price/mix offset by an organic volume decline of 3%. Reported net revenue declined by 4% due to a negative currency impact, mainly from China, Malawi, Malaysia and India.

The solid price/mix was due to premiumisation efforts on local power brands, reduction of lowpriced products in China and growth of our premium propositions. The latter was particularly positively impacted by the Tuborg brand, which grew 17%.

Asian markets had a mixed volume development. Carlsberg achieved particularly strong growth in India, Nepal and Laos, while its volumes in China declined following the market decline and closure of breweries. Organic operating profit grew by 6% and the reported operating margin improved by 60bp. The profit improvement was driven by Funding the Journey benefits, including positive price/mix, tight cost control and brewery closures in China.

Chinese volumes declined organically by 8%, slightly more than the beer market. While Carlsberg gained market share in most of its key provinces, last year’s decision to restructure Eastern Assets and the subsequent closure of breweries resulted in a volume decline of approximately 25% in the affected provinces. Supported by the growth of our premium portfolio, notably Tuborg and Kronenbourg Blanc, price/mix grew by 6%. Profitability in China improved significantly due to tight cost control and the restructuring of Eastern Assets.

In spite of the alcohol ban in the Bihar state as of April, the Indian beer market grew by an estimated 5%. Carlsberg Indian business continued to grow, delivering volume growth of 17% and price/mix improvement of mid-single digit percentages. Carlsberg Elephant grew significantly for the six months, and the Tuborg brand continued its strong growth trajectory. Profitability improved significantly. The Vietnamese market grew by an estimated 8% and we gained market share. Nevertheless, Carlsberg’s volumes declined slightly, due to stocking in Q4 last year ahead of the Têt festive season.

The launch of Tuborg in northern Vietnam at the beginning of the year has delivered promising initial results ahead of plan. Volumes in Malaysia were impacted by the excise tax increase at 1 March. Price increases and good cost control ensured solid financial performance.

Carlsberg business in Laos grew beer volumes while the water and soft drinks business was under pressure due to intensified competitive activity. Profits and margins developed positively.

Nepal delivered very strong performance due to market growth and price increases in addition to cycling easy comparables because of last year’s earthquake.

17 Авг. 2016

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