Russia: Positions of Brewing CompaniesThe 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 brandsIn 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 2019During 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 trend of complication of Russian beer market is going on and in several directions at the same time. The range has got wider, the import and small segments are growing, namely craft beer, alcohol-free beer and special flavor beer. At the same time, all ex-mega brands and light lagers by Russian brewers are experiencing a decline of their shares. AB InBev Efes, Heineken, MBC and Pivzavod Trekhsosenskiy have exceeded the market, Carlsberg was developing slower than the market and Ochakovo as well as some other mid-sized breweries have been cutting down their volumes. To a big extent brewers’ performance was connected to their ability to reach agreement with networks, sacrifice their margin and enter new markets. Craft brewers are facing a serious danger of producers’ registration introduction – de facto licensing. ...
The global outlooks of the legal market of cannabis are excellent. It is possible to simultaneously imagine dry law repeal and craft brewing boom but not in one but in several consumer categories. For alcohol is contained in liquids and cannabis derivatives can be in three physical forms.The value of legal market of cannabis and its products can reach 10% of the world beer market in five years, and in 2030-2040 even reach the same scope provided the current rates of legalization and development of market infrastructure remain at the same level. Cannabinoids are actively integrating into the food industry from chewing gum to beverages deforming the pharmaceutical and alcohol markets, they influence the trends of healthy lifestyle and beauty. ...
Vietnam to sell stake in prized beer companies Sabeco and Habeco
The government will sell its entire 89.59 per cent stake in Saigon Beer Alcohol Beverage Corp. for US$1.8 billion and its 82 per cent holding in Hanoi Beer Alcohol Beverage Corp. for $404 million, according to a post on a government news website Wednesday. Saigon Beer, known as Sabeco, will be sold in two tranches in 2016 and 2017, while Hanoi Beer, or Habeco, will be divested this year, it said.
“This is the first time the government is very clear cut in saying goodbye to major companies completely, without any stakes left,” said Dinh The Hien, a Ho Chi Minh-based economist. “The government’s clear-cut determination matches its long-planned strategy to speed up state stake sales. But it also indicates how stressed the state budget is right now.”
Vietnam, which needs billions of dollars in infrastructure investments for highways to airports, has seen state revenue drop this year with plunging oil prices and a drought that has hurt agriculture production. The budget deficit for 2016 may exceed the planned ratio of 4.95 per cent of gross domestic product, according to National Financial Supervisory Commission.
Vietnam’s plan to slash holdings in companies dates back to the 1990s as a way to spur economic growth. The government’s privatisation plan fell short of its target in 2015, with 289 state-owned companies selling stakes compared with a goal of 514.
The process is “slow and behind schedule” due partly to executives’ concerns about their positions at these companies after the sales, Deputy Finance Minister Tran Van Hieu told Bloomberg last year.
The government plans to sell its Sabeco and Habeco stakes in auctions, according to the government post. Vietnam will offer a 53.59 per cent stake in Sabeco this year before its listing, and the remainder in 2017, according the government posting. Prime Minister Nguyen Xuan Phuc said August 29 that the listings of Sabeco and Habeco must be done prior to their state stake sales.
Vietnam’s beer-swilling culture has made Sabeco and Habeco among the government’s most-treasured assets.
Beer consumption in the Southeast Asian country jumped about 40 per cent in 2015 from 2010, according to the Vietnam Beer Alcohol Beverage Association. Vietnamese are expected to consume more than 4.04 billion litres of beer this year, the most in the region and up from 3.88 billion litres in 2015, according to Euromonitor International. Its citizens of legal drinking age, 18 and above, is expected to increase to 72.4 million by 2021 from 68.7 million this year, according to Euromonitor.
The country’s thirst for beer has attracted interest from foreign companies. Thai Beverage PCL, Asahi Group Holdings Ltd. and Heineken NV are among companies interested in Sabeco, according to Euromonitor analyst Andrea Lianto.
Heineken, which in July acquired a brewery in the port city of Vung Tau from Carlsberg A/S, has a 20 per cent market share, similar to that of Habeco’s, according to Nguyen Van Viet, chairman of the Vietnam beer association. Sabeco, brewer of Saigon Beer and 333 Beer, was Vietnam’s largest beer company with 40 per cent of the market share.
The decision to hold auctions is an effort by the government to be more transparent, said Tony Foster, a Vietnam managing partner for law firm Freshfields Bruckhaus Deringer LLP in Hanoi. It could also line up future sales including that of Vietnam Dairy Products JSC, Foster said. The company known as Vinamilk is one that foreign investors are most interested in, he said.
“If you can get these done on this basis, it sets the stage for the same thing for Vinamilk and then others,” he said.
2 Сен. 2016