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.
Rexam’s two-piece, one litre beer can hits Western Europe
Rexam said the King Can has already been used in Russia and its popularity there gave Carlsberg the confidence to use the pack for its Tuborg Pilsener beer in Germany.
“The popularity of the 1 litre can in Russia proves that consumers enjoy having the option to purchase the larger size, encouraging Carlsberg to release it into the German market,” said Welf Jung, business development director at Rexam Beverage Can Europe and Asia.
Jung told BeverageDaily.com that Carlsberg is also releasing the can in response to growing demand for an alternative to the three piece non-aluminum 1 litre can range – already available in some parts of Germany.
Two piece DWI (Drawn Wall Ironed) are a popular format for normal sized cans but are new in the extra large one litre format. Rexam is the only manufacturer to produce the can type.
Explaining what the can has to offer brand owners, Jung said: “The unique size of the can differentiates the product from other more conventional sized beer cans - it also provides a considerable amount of surface space to display branding and eye catching design.”
And for consumers, he said: “It has all the benefits of a ‘normal’ size can, being easily chilled, staying cooler for longer, easily stackable and transportable and 100 per cent recyclable.”
Rebranding at Carlsberg
Carlsberg is introducing the new 1 litre can into the German market as it begins a major branding overhaul that includes the introduction of a new slogan -“That calls for a Carlsberg”.
J?rgen Buhl Rasmussen, Carlsberg’s CEO, explained what the company is looking to achieve.
“People are familiar with Carlsberg but do not necessarily know what it represents. We want people to know that Carlsberg beer stands for something - for heritage, for quality, for great taste and for doing the right thing.”
14 Apr. 2011