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.
UK. Molson Coors snaps up Cornwall’s Sharp’s Brewery and Doom Bar ale
Founded in 1994, Sharp's Brewery is a brewer of cask conditioned and bottled beers, based at Rock in Cornwall. Doom Bar is said to already the number one selling cask brand in the south- west of England and Wales and the fastest-growing cask brand in Greater London.
Mark Hunter, chief executive, Molson Coors (UK & Ireland) said: "The Doom Bar brand is modern and progressive. It has a loyal following and excellent reputation amongst consumers and customers alike and has the potential to become a truly extraordinary brand.
"We have a wealth of experience with this type of venture and an excellent track record of building brands across all markets. We respect and want to preserve the unique culture of Sharp's Brewery and the special appeal of their brands to beer drinkers."
He said: "The team at Sharp's have a passion for brewing beer of the highest quality with the finest natural ingredients available making this a great marriage of two businesses with similar values. This is a new chapter for Sharp's Brewery and we are excited to play our part in taking Doom Bar to the next stage of its brand evolution."
Nick Baker, managing director at Sharp's Brewery, said: "We have worked exceptionally well with Molson Coors for many years and they have played an important part in the growth of Sharp's Brewery.
"We recognised that they have the capabilities, comprehensive routes to market and the culture to build on and accelerate the progress the business is making, which is why we are delighted to have done this deal.
"It was, and is, important to us to know how Molson Coors will manage Sharp's and their plan to invest in developing the brewery at Rock and the Doom Bar brand is spot on. We are excited to watch Sharp's Brewery achieve even more under their stewardship."
Stuart Howe, head brewer at Sharp's Brewery said: "We are delighted to be joining the Molson Coors team, all of whom are passionate about Sharp's Brewery and committed to the Doom Bar brand. We are incredibly proud to be voted the best regional cask beer by our customers, with the support of Molson Coors we're looking forward to being recognised as the best cask beer in the country."
Molson Coors UK
2 Feb. 2011