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.
Efes International : Higher beer prices will create pressure on demand in 2011
With twenty-five million hectolitres, Efes is one of the big players on the international beer market already. To be able to brew these quantities, a record volume of 152,000 tons of malt was processed in the past year. The group focuses its activity on Eastern Europe, mainly on Russia, a country with extremely high beer consumption where Efes has achieved a considerable market share of ten percent in spite of the virtually uncountable numbers of competitors.
Founded in 1996, the company is very young as beer companies go. In spite of this, is already active in a number of profitable participations and branches in other leading countries of the former Soviet Union, namely in Kazakhstan, Moldavia und Georgia. Other countries are controlled from the Amsterdam site, where the company also has its state-of-the-art group headquarters.
"Sales volume in Turkey beer operations increased by 8.4% in 4Q2010" Alejandro Jimenez, CEO.
Current CEO Alejandro Jimenez finally assumed control of Efes International in 2007. One of his first actions was concentrating the company on its core business of beer, initiating the sale of two soft drink brands to the U.S. Coca Cola group. The current end of the acquisition tour of Efes is the acquisition of JSC Lomisi, the leading beer manufacturer of Georgia.
Thanks to this comprehensive acquisition policy, Efes International has now become one of the largest and leading privately owned beer companies of the world. The twenty-five million hectolitres mentioned above prove the position of Efes International in the group of international, globally acting companies. Today, Efes Anadolu, the parent company, holds a share of 100 percent in EBI.
"Higher beer prices will create pressure on demand in 2011"
It is deliberate strategy, rather than coincidence, that experienced international beverage specialist Alejandro Jimenez controls the history of a group striving for international status. Jimenez, the CEO from Costa Rica, started his career with Coca Cola group after achieving his Bachelor Degree at the University Of Texas in 1973.
Alejandro Jimenez – As international as the Efes brand
There, he held a number of top management positions from 1981 to 1991 before taking over the position as CEO of Panamco Mexico. Panamco Mexico, the largest and most important subsidiary of PANAMCO group, was already the largest beverage provider in Latin America, and the second-largest in the world. In 2001, Jimenez rose to the parent company's management board. He became CEO and Chairman of the Board of Management of EBI group in 2007.
Jimenez filled his management board with international managers of various nationalities. It is particularly noticeable that he made Stefan Gimpel-Henning, former technology manager at Kulmbacher Brauerei, the technical director of Efes International in Russia in 2009. In his new position, Gimpel-Henning is responsible for production of and technology for about twelve million hectolitres, thus almost tripling his range of responsibility as compared to his former German one.
With the market and brand power mentioned in the countries named and its international manpower, Efes International will be able to expand further. The future will show whether the Turkish group will be able to remain out of the eyes of brewing giants, since increasing expansion turns Efes into an interesting candidate for a merger with one of the true big players on the global beer market.
7 Apr. 2011