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.
SAB stems market share losses
Brandhouse, which has about 12% market share, is a joint venture between three global beer companies, Diageo, Heineken International and Namibia Breweries Limited.
Speaking on the sidelines of the Tomorrow's Leaders Convention 2011, the fourth such annual conference, Norman Adami, MD and chairman of SAB, said that, even though the company was confronted with its most serious competitor in decades, it was confident that it could take on Brandhouse. “We think we will be capable to take them on and continue to win against them,” Adami said.
Adami said the local beer market was “always contestable”, describing Brandhouse as a “formidable” company.
Adami said Brandhouse initially banged on SAB's door, demanding 20% market share.
Brandhouse's owners were serious about extracting value from their investments in SA, but noted that SAB was not excited about handing over 20% market share to Brandhouse, he added.
In the past 12 months, Adami said SAB had gained share and clawed its way back to about 89% from about 87%.
Before 2007, SAB had a historical average of about 98%.
In 2007, Heineken NV terminated a contract allowing SAB to produce, market, sell and distribute Amstel lager.
When Diageo, Heineken International and Namibia Breweries Limited re-entered the South African beer market via Brandhouse, they had three established premium beer brands - Amstel, Windhoek and Heineken.
Adami also said SAB was committed to SA, noting that the company planned to invest about 1.3 billion rand in capital expenditure in 2011.
This investment would go into plants, equipment, retailers and trucks.
31 Mar. 2011