Where is the non-alcoholic beer market heading to? Companies and brands. Baltika as a democratic leader. Heineken – how do you shake up the market and shove up the competitors. AB InBev Efes – premium corner. Non-alcoholic import beer. Non-alcoholic beer - Who drinks it? General conclusions. Summer beer. ...
“Catalogue of Russian Beer Producers 2020” includes 1285 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft breweries.This issue has 171 more breweries compared to 2018 (155 business have been excluded and 326 have been included).Starting from 2019, FTS has been publishing data on excise payments by brewers (delayed by 1.5 years), that can be translated into beer equivalent for most of producers.Depending on the volumes, we ranked the brewers that provided information by 6 groups (see pic.). At one end of the production spectrum there are 2/3 of breweries outputting less than 10 thousand decaliters. Their net share amounts to as little as 0.2% of the total beer output volume. On the other end there are 6 federal groups accounting for almost 80%. ...
Dmitry Nekrasov’s Philosophy — on the Past, Present and Future of Ukrainian Brewing IndustryA meeting with Dmitry Nekrasov always turns into a training course: “Introduction to brewing business“. We are talking to a clever “playing trainer“ a person that can be called a godfather of the Ukrainian craft. He has a dozen of successful projects to his name. Dmitry told us about craft beer in Ukraine, on market cycles, on specifity of operating in retail and HoReCa, on union of Ukrainian brewers and certainly, how a brewery of his own, First Dnipro Brewery is doing.
The market of import beer in Russia: review and databasesThe market of import beer is rapidly growing and changing. But while in the past years it was growing due to brands variety, in 2019 major and affordable brands from TOP-10 were developing actively. It seems that the fact of a brand origin from far abroad counties, even if it is not well known but has moderate price and good distribution provides for million liters of sales in the territory of Russia. Among distributors AB InBev Efes was far behind, yet the role of Baltika and suppliers of the second row got more important. The boom of German brands was followed by stagnation of import from other traditional regions (and Belarus) instead the supplies from Mexico, Lithuania and Asian countries grew considerably.
Sri Lanka. Fitch affirms Lion Brewery’s ‘Aa-(lka)’ rating; says wellplaced to recover from floods
Fitch has also affirmed the National Long-term Rating of ‘Aa-(lka)’ on Lion’s outstanding senior unsecured debentures.
Fitch has maintained a Stable Outlook despite Lion’s weakening credit metrics due to the one-time disruption to production caused by floods in May 2016. Lion is Sri Lanka’s largest beer producer, with a leading domestic market share in the beer industry. Beer is the country’s second most-consumed alcoholic beverage after arrack. Lion’s credit profile is supported by its entrenched domestic brands and limited product substitution due to the high technical competence required for brewing beer in contrast to manufacturing spirits. Lion’s leading position has helped the company secure new brands and access a wide distribution network.
Fitch expects revenue to decline in the financial year to 31 March 2017 (FY17) due to higher excise duties on beer introduced in 2015, as well as lost sales due to a temporarily halt in production, as Lion’s manufacturing plant was heavily affected by Sri Lanka’s adverse weather conditions in May 2016.
However, Fitch expects beer sales to recover from FY18 onwards, supported by rising urbanisation, increasing tourist arrivals and increasing per capita income, which will help the segment regain lost market share.
“We expect Lion’s EBITDA margin to normalise to around 27 percent in the medium-term, from the high of 33 percent in FY16, mainly due to taxes on beer overtaking spirits on an equivalentalcohol basis since late 2015,” Fitch said. However, Lion’s margins should benefit in the long-term from operational efficiencies following an upgrade of its production facilities, which have sufficient capacity for the next five years.
Lion’s revenue declined 52 percent yoy in 1Q17 due to lost inventory and a temporary manufacturing halt caused by the floods.
The company is importing beer until local production recommences in late 2016 to mitigate the loss, but this is limited to its main product categories and may negatively affect margins due to the higher costs of imports. Losses on fixed-assets, stock and business interruption are covered by insurance, but the quantum of the claim or when Lion will receive payment is not yet determined.
Fitch expects Lion’s financial leverage, measured as leaseadjusted net debt/operating EBTIDAR, to weaken in FY17 due to lower profitability from business interruption. However, the company should accelerate its deleveraging from FY18, benefitting from lower capex and normalised returns, bringing its leverage ratios below Fitch’s negative triggers.
Meanwhile Fitch cautioned about the high regulatory risks faced by Lion.
Domestic producers of alcoholic beverages face high excise duties, which put legitimate alcoholic beverages outside the reach of many people. The 2015 double duty hike led to tax on strong beer overtaking the tax on hard liquor on an equivalent-alcohol basis, which we believe will slow the demand shift to beer from hard liquor.
Fitch expects further tax increases on beer to moderate, now that beer is taxed more than hard liquor.
31 Авг. 2016