10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Beer market of Vietnam: “Young tiger”Vietnam is one of the few big beer markets that continue to grow steadily. The beer popularity results from its low price, street consumption culture, and social motives. The outlooks of beer market as well as the Vietnamese economy inspire optimism, though the country is heavily dependent on export of goods. The state regulation can be called liberal, but the key risk for brewers is harbored in intensive rising of excise. Within TOP-4 there are two leaders, Sabeco and Heineken that grow at the fastest rates. The first company effectively employs its capacities, the second one focuses on marketing technologies. Almost 80% of the market belongs to century-old brands, yet the middle class and the youth are shifting their interest toward international premium that is growing taking share from the mainstream.
Ukraine. Public Joint-Stock Company Slavutich Brewery declares the illegality of the ban of beer retailing after 10 pm in Lviv
The Law of Ukraine "On Amendments to Certain Legislative Acts regarding Restrictions on Consumption and Sale of Beer and Low-Alcohol Beverages" as of January 21, 2010 (No 1824-VI, Articles 15-2, 15-3) determined a comprehensive list of such restrictions. According to the above document the local administration is unauthorized to put extra restrictions on the sale of beer except for the cases of mass events. Under the current legislation, such regulatory decisions can be made only by the City Council sessions. Whereas in this case the decision was made by the Executive committee of the city council.
Currently, Public Joint-Stock Company Slavutich Brewery has entered an appeal of unlawful actions of the city administration to the prosecutor's office of the city.
We would like to remind you that the similar decision to ban the sale of beer after 10 pm was made by the Ivano-Frankivsk City Council. Later it was appealed by the prosecutor, and on January 1st, 2011, the court decided to cancel the corresponding decision of the Ivano-Frankivsk City Council as illegal.
Natalya Bondarenko, Legislative Director at "Slavutich", Carlsberg Group: "Public Joint-Stock Company Slavutich Brewery is a responsible player in the beer market. Therefore, we fully support the ban of beer sales to non-adults, actively promote moderate consumption and healthy lifestyle. At the same time I want to emphasize that the law applies to everyone, so we strongly oppose its violations both by the market participants and state and local authorities."
PJSC NBC Slavutich
27 Jan. 2011