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.
Carlsberg appoints new head of Group Supply Chain
During the last 8 years under Kasper Madsen’s leadership, Carlsberg’s supply chain has been undergoing significant changes. Starting with the Operational Excellence projects in 2003 and continuing with implementing Lean and optimising the brewery structures in Europe, Carlsberg’s supply chain has become increasingly more efficient.
Peter Ernsting will continue this process, taking the next steps to ensure that Carlsberg reaches the service and efficiency levels of the best in class FMCGs .
Peter Ernsting was previously Chairman of the Unilever Supply Chain Company AG, where he was leading the total end-to-end supply chain of Unilever in Europe responsible for around 20,000 people located across 69 factories and with an overall P&L responsibility of EUR 8 billion. Prior to this, Peter Ernsting managed Unilever’s supply chain organisation in Asia and Russia. Peter Ernsting (52) is Chemical Engineer by education and started his career within Food R&D and manufacturing.
Commenting on this announcement, J?rn P. Jensen, CFO and deputy CEO says: “I would like to thank Kasper for his very significant contributions during his many years with Carlsberg and I wish him all the best in his future career. I look forward to working with Peter, whose valuable international experience at Unilever will be of great value to Carlsberg as we continue to develop our organisation.”
Kasper Madsen added: “I have been with the company now for more than 20 years. I started as a very young Brewer and Chemical Engineer and have been part of a huge change journey in the company, so I feel that now is the right time for me to go out and try something else.”
14 Apr. 2011