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. Schenck beer distributor sold
Chicago-based Reyes Holdings, LLC., a $12 billion a year food and beer distribution conglomerate, said its subsidiary, Florida Distributing Company, LLC., will acquire Schenck Company. The price was not disclosed. Reyes already has food distribution operations in Florida.
"Reyes Holdings has had great success with its food distribution operations in Florida over the years and we are excited to add beer distribution operations and the strong Schenck team to our ranks," James Reyes, director of Reyes Beverage Group, said in a statement. "We look forward to combining our abilities to grow both our own and our retailers' businesses in Florida."
Reyes spokeswoman Molly Reilly added, "We bought the business because it's a great operation."
Founded in Orlando in 1954 by L. Virgil Schenck and the late Jay Schenck, the company expanded into Brevard in 1958. The distributorship today is run by cousins Jay G.M. Schenck and Jeffrey Schenck. Shareholders include 27 members of the family, a majority of whom voted to sell the company.
"Some of the family members thought it would be the best time to get out of the business," Jay G. M. Schenck, the chief executive officer, said in an interview. "It became a question of deciding what the best strategy to exit would be."
Schenck said he doesn't believe Reyes Holdings plans major changes for the company. "They are not bringing down a management team, so I'm under the impression they will run the operation as it's running currently," said Schenck, 56, who has worked for the family business all his life, starting at a youngster washing the delivery trucks and sweeping the warehouses with his cousins.
"Being in the business that many years it's going to be difficult to walk away from," he added.
Reilly said her company plans no immediate changes to either operations or employment levels. Schenck distributes products from MillerCoors, Crown Imports, Heineken USA, Diageo-Guinness, Boston Beer Company and Yuengling, among others.
"We'll work together to share our best practices," Reilly said. "They have a lot of great knowledge that I'm sure we'll learn from."
Schenck serves Brevard, Lake, Orange, Osceola, Polk and Seminole counties. It's the 20th largest beer distributor in the U.S., selling 13 million cases of beer each year to 6,000 retail outlets. The company has a deep involvement with the region, supporting Junior Achievement, the American Heart Association and Coalition for the Homeless of Central Florida, among other charities.
Reyes employs more than 10,300 nationwide. It delivers more than 10 million cases of beer annually, and in 1998, according to Forbes, bought McDonald's largest U.S. supplier, Martin-Brower. Reyes now delivers burgers and fries to all Canadian McDonald's and thousands of the restaurants in the U.S., Forbes said.
13 Feb. 2011