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.
Mexico’s Grupo Modelo sees recovery in beer sales
* Revenue up 9.6 pct (Adds CFO comments, share movement, details on prices)
Mexican brewer Grupo Modelo (GMODELOC.MX) posted a slight rise in first-quarter profit on Friday as higher costs offset a big pick-up in beer sales.
Domestic sales and exports increased by double digits from the year earlier, the company said, noting consumer spending on beer appears to be recovering after the worldwide recession.
"It gives us confidence that the start of the year looks quite promising," said chief financial officer Emilio Fullaondo on a call with analysts.
Even comparing the first-quarter 2011 sales with 2009, which was a better year for Modelo than 2010, the volume was up more than 5 percent, Fullaondo said.
Still, sales costs in the first quarter of this year also rose and Modelo said it spent more on distribution and marketing in the quarter.
To offset rising costs, the brewer said it started to raise prices in Mexico at the end of February.
The company does not have any hedges in place to manage price changes, but executives told analysts they are monitoring prices, particularly for malt and aluminium.
Grupo Modelo shares were down 1.43 percent in morning trading in Mexico at 74.50 pesos.
The company earned 2.16 billion pesos ($181 million) in the first quarter, up 3 percent from 2.09 billion pesos in the same period a year earlier.
Modelo, half-owned by the world's biggest brewer Anheuser-Busch InBev SA (ABI.BR), said quarterly revenue rose 9.6 percent to 19.25 billion pesos.
Exports accounted for 29 percent of Grupo Modelo's total sales in the first quarter of this year, up slightly from 28.5 percent last year, the company said. ($1 = 11.8903 pesos as of end-March)
15 Apr. 2011