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: Beer industry contributes $223.8 billion to U.S. economy
“Brewers across the country, large and small, remain an integral part of their communities. Not only do they promote alcohol responsibility programs for local retailers, schools and families, this study shows they also create sustainable jobs and important tax revenues that contribute to our nation’s economy,” said Dave Peacock, president of Anheuser-Busch and chairman of the Beer Institute. “America’s brewing industry continues to play a significant role in supporting the economy in each and every state.”
“As independent businesses, America’s 3,300 licensed beer distributors are proud to provide more than 98,000 quality jobs with solid wages and great benefits to employees in every state and congressional district across the country,” said Larry Del Papa, president and CEO of Del Papa Distributing Company, Inc. in Galveston, Texas, and chairman of NBWA. “Beer distributors are deeply rooted in their local markets, so it’s only natural that they work hard to keep their communities safe – especially by fighting underage drinking and drunk driving.”
According to the study, the beer industry directly employs more than 1 million people, paying $32.5 billion in wages. Beer sales help support roughly 900,000 retail jobs, including those at supermarkets, convenience stores, restaurants, bars, stadiums, and other outlets. Supplier and induced impacts generate nearly $135.7 billion in economic activity in all industries specifically agriculture and manufacturing.
“These numbers demonstrate that our industry continues to play an integral role in providing jobs and revenue necessary to heal our recovering economy,” said Joe McClain, president of the Beer Institute. “For this reason, it is important that state and federal officials consider equitable tax policies that do not unduly harm an industry that aids economic growth.”
“In addition to providing quality jobs with solid wages, the three-tier beer distribution system provides transparency and accountability while offering American consumers with tremendous choice and variety – nearly 13,000 different labels of beer – at a great value,” added NBWA President Craig Purser. “This time-tested, effective system of state controls, in which America’s beer distributors play a critical role, works to ensure alcoholic beverages are sold only to licensed retailers who in turn are responsible for selling only to adults of legal drinking age,” added NBWA President Craig Purser.
In addition to strengthening the U.S. economy, the beer industry plays a vital role in promoting responsible consumption of its products. Brewers, importers, and independent beer distributors, licensed at both the state and federal levels, dedicate significant resources to develop public safety, education and prevention campaigns and to promote federal and local programs that help reduce underage drinking and drunk driving. These efforts, along with those of parents, law enforcement, federal and state alcohol beverage regulators, educators, and other community groups, have helped contribute to declines in underage drinking and drunk driving for nearly three decades, according to government data.
The Economic Impact study was conducted by John Dunham & Associates based in New York City and covers data compiled in 2010. The complete study, including state-by-state and congressional district breakdowns of economic contributions, is available at Beer Serves America, www.BeerServesAmerica.org.
The Beer Institute, established in 1986, is the national trade association for the brewing industry, representing both large and small brewers, as well as importers and industry suppliers. The Institute is committed to the development of sound public policy and to the values of civic duty and personal responsibility: www.beerinstitute.org.
The National Beer Wholesalers Association (NBWA) represents the interests of America’s 3,300 licensed, independent beer distributor operations in every state, congressional district and media market across the country. Beer distributors are committed to ensuring alcohol is provided safely and responsibly to consumers of legal drinking age through the three-tier, state-based system of alcohol regulation and distribution. To learn more about America’s beer distributors, visit www.AmericasBeerDistributors.com
10 Mar. 2011