GLOBAL: Brewers must look to Vietnam to replace BRIC growth - study
Vietnam is the “stand out” market for brewers looking to replace spluttering BRIC growth in 2014, a new study has claimed.
The East Asian nation is the only one from the so-called “Next-11” countries that “shows strong and stable volume growth” for this year, according to a Rabobank report. Fellow Next-11 country Nigeria also has good potential but will suffer from high inflation, the report added.
Titled “Beyond the Yellow BRIC road”, the report, out this month, warns that demand for beverages in Brazil, Russia, India and China is moderating. It said companies will need to find new distribution channels in the Next-11, as well as in mature markets.
Next-11 countries are expected to grow beer volumes by 5.1% in 2014, slightly higher than last year, the report said. However, it added that other than Vietnam, political unrest, inflation and government regulations are impacting the beer sector in the bloc.
The Next-11 is made up of Vietnam, Nigeria, South Korea, Mexico, Turkey, Philippines, Iran, Indonesia, Pakistan, Bangladesh and Egypt.
According to latest figures, Vietnam is the world's 12th biggest beer market by volume. In April, Anheuser-Busch InBev said it was planning to build a brewery in the Asian country to capitalise on its fast-expanding beer market. SABMiller and Heineken already have their own breweries in Vietnam.
Turning to wine, the Rabobank report said growth prospects in China remain solid despite a slowdown over the past two years. But it warned that the effect that anti-gifting measures had on sales has exposed “the inherent instability in the market”, which is likely to remain a feature “for some time to come”.
“There are signs more conventional consumption habits and channels are steadily growing in more advanced regions," the report added.
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