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.
AB InBev buying craft brewer Goose Island for $38.8 million
The $38.8 million deal is set to close by June, pending regulatory approval.
Goose Island will continue to be brewed in Chicago, where A-B plans to invest $1.3 million to boost production capacity by 10 percent, A-B president Dave Peacock said in an interview.
A-B might expand Goose Island's reach a little beyond it's current six-to-seven state regional distribution, but there are no plans right now to make Goose Island a national beer, Peacock said.
"This (acquisition) will help us in the Midwest," Peacock said.
A-B was attracted to Goose Island's strong showing in beer's high-end market, filled with craft beers and imports. While overall U.S. beer sales fell flat along with the nation's economy in recent years, strong growth has still been seen among craft brews.
"We just need to be more competitive there," Peacock said.
The Goose Island deal is an outgrowth from A-B long-held investment in Craft Brewers Alliance, the Portland, Ore., owner of well-regarded Redhook Ale Brewery, Widmer Brothers Brewing and Kona Brewing Co.
A-B owns 32.25 percent of Craft Brewers Alliance, which until today held a minority stake in Goose Island.
Anheuser Busch, Goose Island's distribution partner since 2006, is buying a 58 percent stake in the business, formally called Fulton Street Brewery LLC, from its founders and investors, for $22.5 million.
It also is buying the remaining 42 percent stake from Portland, Ore.-based Craft Brewers Alliance Inc. for $16.3 million. Anheuser-Busch has been a minority shareholder since 1994.
Some of Goose Island's brands include Honkers Ale, 312 Urban Wheat Ale and Matilda. John Hall will continue in his position as chief executive of Goose Island.
The deal does not include the acquisition of two Goose Island brew pubs, which will remain open.
"We are very committed to expanding in the high-end beer segment, and this deal expands our portfolio of brands with high-quality, regional beers," A-B President Dave Peacock said in a statement. "As we share ideas and bring our different strengths and experiences together, we can accelerate the growth of these brands."
28 Mar. 2011