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. Pub chains: January better than expected
However, last January was, itself, hit by snowy weather and remains a slow month with like-for-like sales over the four weeks in January down 28.5% compared to December.
”The positive news this past month will be tempered by the fact that January last year was itself badly affected by snow with like-for-like sales then down 5% on 2009,” said Peach Factory’s Peter Martin.
“However, the double-digit recovery this year more than compensates for that and will encourage operators into hoping that this performance may be more than just a readjustment.”
Jonathan Leinster, head of European leisure and tobacco research, at UBS Investment Bank, said that it appeared that the rise in VAT was a non-event for the eating-out sector. “We believe that most operators increased food prices with their autumn menus so only drinks prices would have appeared to customers to been affected by the VAT rise,” he said.
“Some of this month’s rise is a catch-up from a year ago and promotions would have been more effective this January when customers were snow-bound a year ago. On a two year basis, the compound annual growth in like-for-like sales has been 2.5% for January.”
“Most of like-for-like growth in the last two years has been about price/mix in our opinion, but volume is beginning to stabilise. If the contributors to the Coffer Peach Business Tracker experienced price rises in line with Restaurant RPI less changes in VAT, then volume excluding snowy months, fell 0.5% in 2010 compared to 2.4% in 2009.
“Many operators have talked about customers trading up the menu in 2010, or adding starters or desserts to their main meal, rather than increased footfall.”
14 Feb. 2011