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.
Brewers Association revises ‘craft brewer’ definition
The association has replaced the designation of "small" in the definition and increased the production cap from 2 million barrels to 6 million barrels. It cited several reasons for the change, including the recognition that ‘small' is a descriptive term relative to the overall size of the industry, it said.
"Thirty-four years have passed since the original small brewers tax differential defined small brewers as producing less than 2 million barrels," said Nick Matt, chair of the Brewers Association board of directors and chairman and chief executive officer of F.X. Matt Brewing Co., in a statement. "A lot has changed since 1976. The largest brewer in the U.S. has grown from 45 million barrels to 300 million barrels of global beer production."
The alteration of the definition of craft brewer will align with the association's government affairs efforts, including its support of a bill to update the cap on an excise tax differential for small brewers to 6 million barrels each year in production for their first 2 million barrels in 2010, Matt said.
The industry's largest craft brewer, The Boston Beer Co., is poised to become the first craft brewer to surpass 2 million barrels of traditional beer within the next few years, the association reported. The loss of the company's production in craft brewing industry statistics would inaccurately reflect on the craft brewing industry's market share, it said. Additional members of the Brewers Association also are on a similar growth trajectory to approach the 2 million barrel threshold, it said.
The craft brewed beer market share is approximately 5 percent of the U.S. beer industry. The association has a stated mission of helping America's craft brewers achieve more than 5 percent market share by 2013.
9 Feb. 2011