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.
US. On tap: Breweries in Bay, Midland, Saginaw counties continue growing in popularity, profitability
In Bay City, two breweries - BARTS, 804 E. Midland, and Tri City Brewing Co., 3020 N. Water - have opened since 2005. Owners of each facility see more growth this year.
"We've basically doubled our sales the last two years," said Kevin Peil, majority owner and founder of Tri City Brewing Co.
Peil opened the brewery, which has about 40 or so other investors/owners, in 2007. The brewery, which sells some of its product at Midland's Dow Diamond minor league baseball park, expects to expand its tasting room this year and increase its production by more than 60 percent.
"We're targeting 550-600 barrels this year," Peil said.
A barrel of beer equals 31 gallons, or about 330 12-ounce cans or bottles.
View full sizeMichael Randolph | The Bay City TimesThe IPA or 'Indian Pale Ale' is one of 11 beers on tap that are brewed at B.A.R.T.S. in Bay City.
Bay City businessman Art Dore, owner of BARTS - formerly Lumber Barons' Charcoal Grill and Brew Pub - reopened the facility in 2005.
"The revenue has been increasing steadily in the brewery," said Dore, who owns a number of bars and restaurants in Bay City. "The brewery part is one of our high points."
BARTS produces about 375 barrels a year, according to brewmaster Marty Rapnicki.
"Beer is very profitable," Rapnicki said. "Alcohol in general is more profitable than food, and then you add the fact you make it, so you don't have the middleman and the distribution."
On Jan. 22, about 600 people attended a beer tasting event at BARTS with 20 brewers, including the region's newest brewery, Midland Brewing Co.
"So far we're spot on where we want to be, and it's just a matter of every month it ratchets up another level," said Keith Lawrence, co-owner and brewer of Midland Brewing Co., 5011 Saginaw, Midland. "There's potential."
Scott Graham, executive director of the Michigan Brewers Guild, a nonprofit public awareness and promotion group for Michigan craft beer brewers, said Michigan ranks fifth in the nation with about 90 craft breweries.
One of Michigan's most well-known craft brewers is in Saginaw County. The Frankenmuth Brewery dates back to 1862, although the current building was constructed in 2003.
Frankenmuth Brewing Co. brewed about 2,500 barrels last year, according to the brewery's president, Haithem K. Sarafa.
"We're continuing to grow," Sarafa said. "We plan to double our output this year."
Frankenmuth Brewery, 425 S. Main, reopened July 1, 2009, after being shuttered for three years. It joined Sullivan's Black Forest Brew Haus & Grill, 281 Heinlein, as the city's second brewery to open since 2003.
Graham and other officials attribute sales growth to a close-knit brewing community and rising interest from consumers for specialty beers.
"Craft brewed beer in Michigan has been going up," Rapnicki said. "Everybody's thinking about buying local, think locally ... well why not buy locally produced beer?"
1 Feb. 2011