GLOBAL: Emerging markets to account for 70% of beer volumes by 2016
Beer volumes are set to soar in many emerging markets
Emerging markets will account for around 72% of global beer volumes by 2016, due to fast-growing populations and GDP growth rates, analysts have predicted.
In an analysis of the future beer market, UBS has forecast that the global beer profit pool will hit US$47.7bn in the next four years. Brazil, China, Mexico, Japan and the US will "drive" 50% of that profit pool, it predicts.
Latin America (LatAm) and Africa will offer the "sweet spot" of growth and high profitability, the report says. "LatAm in particular offers defensibly high margins with visibility from cost savings in Mexico," UBS said.
But, Western and Eastern Europe will remain a struggle, the report has predicted. Despite "decent" volume growth, off-trade pressures are "intensifying", UBS said.
Of the global brewers, UBS said Anheuser-Busch InBev is its "top pick" and remains a "buy" recommendation. "It combines strong EM growth, best-in-class pricing power and cost-savings potential in Mexico and the US," UBS said. It predicts A-B InBev will have 39% of the global beer profit pool by 2016.
SABMiller is top pick among UBS' "neutral" ratings, it said, as it is in the sweet spot for volume growth and high earnings. But, UBS warned: "We see some margin headwinds in the short term."
On overall M&A activity in the beer industry, UBS said it predicts a "pause" after the Asia Pacific Breweries ownership situation is resolved, as "leading industry consolidators digest and deleverage". But, it added: "Given their highly cash-generative characteristics, we would expect to see appetite for large-scale deals resume from 2014 onwards."
Environmental sustainability remains one of the most active areas for the global drinks industry. This year, just-drinks returns to the subject with four separate management briefings, one per sector....
This "value set" report combines Beer in the U.S., Imported Beer and Specialty Beer and Microbrewery Markets to create the most exhaustive study of the U.S. beer market available. An $18,000+ value th...
In the second part of this management briefing, which looks at environmental sustainability in the brewing sector, Ben Cooper looks at the role played by sourcing ingredients locally....
Here's the third part of this month's management briefing, which looks at three of the world's largest brewers and their efforts in the environmental sustainability arena....
The fourth and final part of this month's management briefing, which looks at the efforts of the brewing world in the environmental sustainability arena, considers the work of Heineken, Molson Coors a...
It would appear that either Anheuser-Busch InBev doesn't have the stomach for a courtroom battle with the US Department of Justice - would anyone? - or it has had 'a bit of a chat' with the department...
- Analysis - Remy's Cognac "dead-cat bounce"
- Comment - How Hand-Made is Tito's Handmade Vodka?
- Heineken to stay "active player" in beer M&A - CFO
- Diageo's future brighter than present suggests
- Diageo's Q1 Results by Region
- Moët Hennessy unveils first Travel Retail outlet
- United Spirits sees Q1 net loss
- Beam Suntory, Edrington part ways in Travel Retail
- Diageo puts Beckham centre stage in Haig Club ad
- Smirnoff Ice gets India launch