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.
Ireland. Heineken warn of challenging 2011
Heineken Ireland’s 2010 turnover came in at €402 million — pretty much in line with the previous year’s total — but its share of the overall beer market on the island of Ireland grew by 0.2% to 26.3%.
Heineken and Coors Light were the fastest growing brands in the Irish pub-trade last year.
The latter "significantly" outperformed the Irish beer market, with growth levels of 6.2%, while the Heineken brand, itself, remains the country’s best selling lager brand, with a 41% share of the pub-based lager market.
Meanwhile, the company’s stout brands — Murphy’s and Beamish — "performed broadly in line with the declining stout market for 2010".
The company has, however, pointed to the potential for a tough year ahead.
"The pub trade is totally dependent on disposable income. Severe constraints on credit — combined with levels of consumer disposable spend being stretched — will certainly make it tough for all to compete, and in reality 2011 will be another tough period for the industry," management said yesterday.
Heineken Ireland did point out that last year’s 20% excise reduction has had the desired effect on arresting cross-border purchasing, resulting in 6% growth in the off-trade sector, but said more needs to be done.
"The overall situation remains extremely difficult for a key national industry that continues to support nearly 75,000 jobs and provides €2bn in VAT and excise revenues to the state.
"Some form of stimulus is needed here to arrest the decline of the pub segment in the Irish marketplace of today," the company added.
The value of Ireland’s total beer market fell by 6%, or €200m, last year to €2.6bn. Meanwhile, on a group-wide basis, Heineken NV reported a 9.7% increase in annual revenue to €16.1bn and a 41% rise in net profit to €1.44bn.
Group management said that its European focus, this year, will be on innovation and marketing, while volume development will be the key focus in the emerging markets of Latin America, Africa and Asia.
17 Feb. 2011