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.
Mexico’s FEMSA posts higher Q4 profit
The Monterrey-based company reported a fourth-quarter profit of 4.94 billion pesos ($401 million), up 21 percent from the year-earlier quarter, and said in a statement it is seeking to raise its dividend by more than 75 percent.
FEMSA's chain of Oxxo convenience stores, which grew with the opening of 415 stores in the quarter, reported revenue jumped 19 percent to 16.7 billion pesos. FEMSA ended the year with 8,426 Oxxo stores across Latin America.
Same-store sales -- sales at stores open more than a year -- jumped 7.9 percent in the quarter as they attracted more customers and customers spent more on average per purchase, FEMSA said.
The company also benefited from its 20 percent stake in Dutch beer company Heineken (HEIN.AS), which reported results that beat full-year earnings forecasts earlier this month.
FEMSA sold its beer unit to Heineken in April in exchange for the stake.
Chief Executive Jose Antonio Fernandez said the company is optimistic given that there seems to have been a gradual improvement in consumer confidence, as reflected in results from Oxxo.
FEMSA said in a statement it is proposing to raise the amount allotted for its dividend to 4.6 billion pesos this year, subject to approval at its annual shareholders' meeting in March.
The company operates the Oxxo convenience stores chain and controls Coca-Cola FEMSA (KOFL.MX), the biggest Coke bottler in the world.
The bottling affiliate reported a higher fourth-quarter profit earlier this week, even as it posted lower revenue that it attributed to the devaluation of the Venezuelan bolivar.
Consolidated revenues at FEMSA climbed almost 4 percent to 45.66 billion pesos. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased almost 9 percent to 8.72 billion pesos.
25 Feb. 2011