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.
SABMiller announces further investment in its Southern Sudan operations
SSBL's state of the art brewery in Juba is currently at full capacity. By November 2011, today's investment will have increased brewing capacity to a total of 500,000 hectolitres.
The investment comes in response to very positive consumer acceptance of SSBL's brands in its first two years of operation and will enable the company to service the entire South Sudanese market with a balanced and affordable portfolio of brands. The popularity of the newly-launched White Bull brand and the locally brewed and bottled Nile Special brand has driven the increase in production capability. However, improved capacity will also give the company the flexibility to introduce new brands to the market.
Ian Alsworth-Elvey, Managing Director of SSBL, said "Our investment in Southern Sudan continues to bear fruit due to the country's improving economic outlook and a continued positive consumer response to our brand portfolio. Increasing our brewing capacity takes the business to the next level, supporting growth in our key mainstream segments and helping us to build market share.
"In line with our global priorities, we are continuing to build the business through the value chain, working with local farmers to improve techniques and increase yield and supporting employment in the local community. Today's announcement reinforces our commitment to this exciting and growing market."
SSBL commissioned its brewery in South Sudan in 2009 and invested US$37m to build the facility in Juba. To date, its operations in the region have created employment for 200 Sudanese. Its pioneering land lease agreement ensures that the local community receives royalties from the development and benefits from the business' continued success. SSBL, through SABMiller, is one of the largest private sector contributors to the South Sudanese economy, paying excise tax at both national and state level.
In 2010 SABMiller won nearly US$1 million funding from the Africa Enterprise Challenge Fund (AECF) to introduce an innovative local sourcing model for cassava, which will provide the ingredients from which beer will be brewed. SABMiller is partnering with leading NGO, FARM-Africa, to implement the initiative, which will bring direct and significant long-term market opportunities for around 2,000 smallholder farmers with dependants and other employment effects ensuring approximately 15,600 people could benefit in three years.
The Juba brewery will continue to provide increased carbonated soft drink (CSD) capacity of 320,000 hectolitres (from initial capacity of 60,000hl), in response to the initial popularity of SSBL's Club Minerals Sparkling Soft Drinks range and Source Pure Drinking Water.
Notes to editors
SABMiller plc is one of the world's largest brewers with brewing interests and distribution agreements across six continents. The group's wide portfolio of brands includes premium international beers such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is also one of the world's largest bottlers of Coca-Cola products.
In the year ended 31 March 2010, the group reported US$3,803 million adjusted pre-tax profit and group revenue of US$26,350 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.
High resolution images and broadcast footage are available for the media to view and download free of charge from the News and media centre on www.sabmiller.com
12 Apr. 2011