Page 18 - bne_Magazine_September_2017

18 I Companies & Markets bne September 2017
litres, although there will be some further decline in annual sales volumes in years ahead.
Black market beer squeeze
Georgij Grebinskij, research manager at Euromonitor, said that the high level of illicit trade is one reason behind the long-lasting negative beer market trend in Russia, along with the economic turmoil that started in 2014 and continues
to negatively affect the Russian economy and consumer disposable incomes.
He added: “This by no means implies that this is the only reason for the drop in alcohol consumption – governmental bodies are indeed putting some real effort into fighting alco- holism in Russia. Over the years we saw measures like a ban on advertising and a ban on sales in some kinds of outlets, as well as a ban on sales of beer in PET bottles larger than 1.5 litres.”
Healthy lifestyle trends are on the increase in Russia in recent years, putting a further dent in beer sales, observed Grebinskij. “Health bloggers, the constantly increasing number of sport clubs, and the overall perception of the
bne:Funds
Belarus,China mull $500mn investment fund, closer
cooperation
bne IntelliNews
Relations between China and Belarus continue to develop as Beijing uses the small Eastern European state as a bridgehead into Europe.
The two governments are considering setting up a $500mn investment fund to attract residents to their flagship joint venture, the Great Stone logistics and manufacturing
park just outside the capital of Minsk.
The project is due to cost some $1bn in total and will act as a transport and production node for goods flowing from east to west as part of China’s massive One Belt, One Road (OBOR) project. The first phases are already complete and include warehouses and logistics firms. In the next phase the operators
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importance of a healthy lifestyle had a negative effect on alcohol consumption.”
Looking at Ukraine, Grebinskij anticipated that “beer sales will see a better performance than in the last five years, when the recorded total volume CAGR was -10% and the value CAGR was -6% at constant 2016 prices.
He added: “The forecast period performance [to 2021] is expected to be better because in the review period the category was hit by drastic increases in excise taxes and a dramatic drop in purchasing power.”
Anadolu Efes on August 8 reported that its net income increased by 2% y/y to TRY175mn (€42mn) in the second quarter. Its revenues moved up 21.6% y/y to stand at TRY3.76bn.
In the first half of the year, the brewer’s profit declined to TRY90mn from TRY232mn a year earlier. The company’s H1 revenues increased to TRY6.2bn from TRY5bn in the same period of 2016.
are hoping to attract more manufacturers. A total of 15 compa- nies have already made the park their home.
The latest addition to the family is Ruchtech, which will begin construction of a $30mn plant to develop and manufacture automated laser systems for macro- and micro-processing of metal items, alloys, and composite materials will start this year.
As of today, there are 11 resident companies in the park with Chinese capital, one with Austrian, one with American, and two with Belarusian participation.
Plans for the fund were discussed during the meeting between Belarus President Alexander Lukashenko and Xiao Yaqing, chair-