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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.

Will Vietnam decide to use «golden share» to protect company brands?

The government is striving to receive the best prices and protect Vietnamese brands as it implements its plan of divesting itself from big state-owned enterprises.
20160928093500-brand-protection

The Vietnam Financial Investors’ Association (VAFI) estimates that the State would get $2 billion from the sale of two brewers – Sabeco and Habeco – alone.

However, some analysts believe that the value of the two enterprises, the leaders in the industry, must be much higher.

As for the other 10 enterprises, in which the State Capital Investment Corporation (SCIC) acts as the representative of the State, the value could be billions of dollars.

Vinamilk, in a document to state management agencies in late 2015, pointed out that if the State sells its stakes in the dairy producer at VND120,000 per share, it would earn VND64.9 trillion. If the price is at VND150,000 per share, it would earn VND81.15 trillion. This means that the State can expect the amount of $2.9-3.6 billion if sells all the Vinamilk’s stakes it has.

Meanwhile, some foreign investment funds believe the value of the dairy producer could be $4 billion.

Dang Quyet Tien, deputy head of the Ministry of Finance’s Enterprise Finance Department, affirmed that enterprises will have to list their shares on the bourse before the state’s shares are sold.

“It is necessary to list Sabeco’s and Habeco’s shares to find out their real value,” Tien said. “And when selling stakes, it is necessary to hire consultants to revalue.”

He explained that the share price on the bourse will be just for reference, and that the prices at equitization must not be considered as the official value. Only by doing so will the state be able to sell stakes at the best prices.

‘Golden share’ will protect Vietnamese brands

Experts have warned that the beat Vietnamese brands would disappear from the market if most profitable enterprises are sold to foreign investors.

Meanwhile, foreign investors, with their powerful financial capability, are the most potential buyers.

Tien from MOF said MOF is aware of the risk and is considering applying necessary measures to prevent this. One of the measures is the ‘golden share’.

Instead of holding the controlling stakes which allow the State to veto other shareholders’ decisions, the State can hold a ‘golden share’.

A golden share is a nominal share which is able to outvote all other shares. This means that any decision on changing brands must get approval from the golden share holder.

Golden share is held by a certain governmental organization. The issue is mentioned in the 2014 Enterprise Law.

Tien said ‘golden share’ is a method applied in many countries to companies which undergo equitization and transformation into stock companies.

5 Окт. 2016

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