TOP 10 GLOBAL BREWERS BY VOLUME SHARE 14-15

Aug 17, 2016

(TDB) - With Carlsberg’s financial results making their way into the ether, we’re charting the top 10 global brewers by volume share for the period 2014-15.

Carlsberg significantly reduced its reliance on the challenging Eastern and Western European markets over 2010-2015. In 2010, Eastern and Western Europe jointly accounted for 84% of Carlsberg’s total alcoholic drinks volumes. By 2015, this share had fallen to 69%, partly as a result of the company experiencing falling volumes in both regions due to a range of factors including difficult macroeconomic conditions, market maturity, government efforts to reduce alcohol consumption and beer facing competition from rival alcoholic drinks.

However, the shift in Carlsberg’s geographic profile was primarily driven by the company’s efforts to reduce its reliance on these core regions through expansion in emerging markets in Asia Pacific. Carlsberg’s Asia Pacific volumes posted an 18% CAGR over 2010-2015, driven primarily by acquisitive expansion in China and supported by strong growth in markets such as India and Vietnam. 2015 saw Carlsberg continue to strengthen its network of local Chinese breweries, as the company announced that it was to gain full ownership of Wusu Beer Group, which owns six breweries in Xinjiang with a combined annual production capacity of approximately six million hectolitres.

Russia is Carlsberg’s largest national market, accounting for 25% of its global beer volumes in 2015. As a result, Carlsberg, the leading brewer in the market with a 37% volume share in 2015, has suffered severely from deteriorating conditions. The Russian government’s efforts to reduce alcohol consumption had a significant negative impact on beer consumption in the market over 2010-2015. Government measures included reclassifying beer from a foodstuff to an alcoholic drink in 2012, with legal restrictions on the retailing of alcohol applying to beer from 2013.

In addition, beer saw excise tax raised significantly towards the end of the review period and the political situation in Ukraine, which led to the imposition of economic sanctions on Russia, contributed to the deterioration of macroeconomic conditions. These factors led Russian beer volumes to fall by more than 7% in both 2014 and 2015. Beer volumes are forecast to decline further over 2015-2020 due to continuing challenging economic conditions.


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