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.
Peru. Backus committed to sustainable development
Backus is committed to sustainable development not because “it’s what we should do,” but because it makes sense for increasing the value of the business. Felipe Cantuarias stated that “a close link exists between our capacity to grow as a business and the well-being and prosperity of the communities in which we operate.”
On another note, indicators of international studies were presented, demonstrating that a sustainable development focus boosts the reputation and credibility of a business, attracts talented personnel and, moreover, allows the company to generate economic results through increased sales, which are the basis for generating social and environmental results.
Attending the presentation were Baltazar Caravedo, president of SASE Consultants, and Henri Le Bienvenu, general manager of Peru 2021, who have actively participated in the creation and validation of Backus’ sustainability report. This is the first report from the alcoholic beverages division with a “Grade A” level from the Global Reporting Initiative in Peru.*
During 2011, Backus, a part of the SABMiller group, will continue to implement strategies that encourage responsible alcohol consumption, work on projects for handling the environment (such as reforestation in Pucallpa), and develop treatment plants for residual water in Arequipa and for the handling of residual solids and recycling, the company said. It also continues its “Progressing Together” programme, designed to develop the capacity of businesspeople working in the small and medium-sized companies linked to Backus’ valuable chain of firms.
7 Feb. 2011