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.
Wisconsin brewer to buy Memphis bottling facility
City Brewing Co. plans to purchase the Hardy Bottling facility for $30 million and will invest another $11 million to update the plant and restart beer production, Memphis Mayor A C Wharton and company officials said.
City Brewing CEO George Parke said the company hopes to begin beer production at the Memphis facility in July, if all the proper licenses are approved. As a contract beverage producer, City Brewing makes and packages beer, tea and energy drinks for large beverage companies.
Parke said the company was looking for a third facility because its other locations in the Wisconsin cities of Latrobe and La Crosse are at or near capacity. The Memphis facility will be renamed Blues City Brewery.
Operations at its Wisconsin facilities are not expected to be affected, Parke said. The deal is expected to close at the end of April.
The company is receiving a $5.7 million tax break over 15 years. City and county governments are estimated to generate $33.5 million in revenue from the project over the 15 years, according to the Memphis/Shelby County Industrial Development Board.
The plant was built in 1971 and has been owned by the Jos. Schlitz Brewing Co. and Stroh Brewery Co. Carolyn Hardy and other investors bought the plant from Molson Coors in 2006 for $9 million.
A tornado damaged the plant in February 2008. It currently bottles only non-alcoholic beverages.
Wharton praised the company for bringing the much-needed jobs to Memphis. He said the improved facility could help revitalize the Hickory Hill neighborhood where it's located.
"Most people that I run into wake up and say, 'Can you find me a place to go to work today?'" Wharton said. "This answers that request."
The company said the new jobs are expected to create an average wage of $41,705 per year and include a benefits package.
31 Mar. 2011