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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.

Thailand. ThaiBev looks abroad to grow

Thai Beverage Plc (ThaiBev) will aggressively boost its business footprint in Asean through mergers and acquisitions, including a further stake in Vinamilk, Vietnam's largest dairy producer.

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The moves will help ThaiBev achieve its goal of becoming a leading, sustainable drinks company in Asean by 2020. Chief executive Thapana Sirivadhanabhakdi said ThaiBev is interested in acquiring major stakes in Saigon Beer Alcohol Beverage Corporation and Hanoi Beer Alcohol and Beverage Corporation.

The Vietnamese government wants to divest of its 89.59% stake in Saigon Beer for UScopy.8 billion in auctions this year and next, along with its 82% stake in Hanoi Beer Alcohol and Beverage for $404 million.

"We're interested in both Saigon and Hanoi beer, but we will wait for bidding details from the Vietnamese government," Mr Thapana said.

Apart from the two beer operations, ThaiBev is eyeing investment in more drinks businesses in Vietnam.

"We will continue to expand our beverage business in Vietnam because it's one of the growth markets along with Myanmar," Mr Thapana said.

ThaiBev plans to increase its stake in Vinamilk, in which Fraser and Neave, ThaiBev's subsidiary in Singapore, holds 11% now.

Apart from bidding for the two Vietnamese beer operations, the company plans to begin marketing its Chang beer in Vietnam later this month.

Chang beer will be sold at Metro cash-and-carry stores. Berli Jucker Plc (BJC), a subsidiary of ThaiBev, acquired Metro earlier this year.

Thai Corp and Phu Thai, two trading companies under BJC, will also help distribute Chang beer in Vietnam.

Moreover, ThaiBev plans to add to its whisky portfolio in Vietnam. It is studying the launch of a new whisky brand or the export of existing brands from Thailand to Vietnam.

The new whisky brand would begin sales in the Vietnamese market next year. The group already markets Old Pulteney premium Scotch whisky in Vietnam.

"Apart from Vietnam, we also plan to expand our logistics and beverage businesses in Myanmar," Mr Thapana said. "We have sent our team to survey the market in Indonesia before marketing some non-alcoholic products there."

To accommodate its aggressive expansion, ThaiBev's board approved a business restructuring, effective on Oct 1, in a bid to pursue the Vision 2020 goal of becoming a leading drinks company in Asean.

The company will have two new units, brand investment management and route-to-market, to support its three core units of spirits, beer and non-alcoholic drinks.

Mr Thapana himself will look after brand investment management while Ueychai Tantha-Obhas, who has more than three decades of experience in Thailand's spirits markets, will handle the route-to-market unit.

Mr Ueychai will be promoted as the company's senior executive vice-president. His key work is to oversee distribution channels and harmonise businesses across alcohol and non-alcohol businesses under ThaiBev.

Apart from Mr Ueychai, the board also appointed three experienced executives to serve as CEOs for the spirits, beer and non-alcoholic product units: Prapakon Thongtheppairot, Edmond Neo Kim Soon and Vivek Chhabra.

"With the new business structure, we could transform ThaiBev into a truly sustainable organisation," Mr Thapana said.

ThaiBev will spend 2 billion baht to build the Chang brand for beer, soda and drinking water next year. The company aims for Chang to be the leader in Thailand's beer market with a 45% share by 2020.

13 Сен. 2016

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