The beer market dynamics in Russia is approaching zero, yet major brewers are divided into those who developed considerably in 2017 and those who considerably reduced their volumes. For instance, company Efes has managed to substantially extend their sales due to restrained pricing policy and activity in the modern trade. Heineken has also demonstrated an excellent performance promoted by significant increase of advertisement budgets launching a non-alcohol sort of the title brand and unusual activity in the economy market segment. Carlsberg and AB InBev have been focusing on margins and lost a market share of their inexpensive brands. Serious dependence on PET package and mass enthusiasm about Zhigulevskoe have negatively impacted the most of big regional brewers, that have been for the first time pressed by the leaders in the key sales channels, especially in Volga and Central regions. In the small business there has been a noticeable slowdown in appearing of new restaurant breweries, yet the number of craft breweries has been growing rapidly. In 2018, the beer market is likely to grow a little, while the share of AB InBev Efes may decrease due to the integration. ...
“Catalogue of Russian Beer Producers 2018” includes 1070 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft microbreweries.The catalogue includes 32 large breweries, 75 regional breweries, 693 industrial mini- and microbreweries as well as 270 restaurant breweries. ...
Global hop marketA local alternative to mass beer suggested by independent brewers has been successful and is now altering the global market. Beer is becoming more diversified, so transnational companies have to accept the new game rules and to switch focus to young and fast growing markets. All these processes increased the demand for aroma and bitter hop as well as their acreage expansion on two continents. However now there appeared a downward trend of alcohol consumption in the world, so even special sorts can soon turn to be sufficient. In this connection the dynamic American hop market is already facing some problems. EU hop producers have become more cautious, they are not racing to exceed the demand and look forward with more confidence, judging by the contract terms.
Hop Market in RussiaGermany still dominates the Russian market, yet over the recent two years one has been able observe a continuous success of Czech hop suppliers. Their expansion and growing popularity of hops from the United States became the drivers of supplies growth in 2016 despite the preceding modest harvest crop in the EU, as well as the factor of relative stability in 2017. In this connection, in 2017, the ratio of the varieties continued to shift towards the aroma ones, and the supplies of Magnum hop and other alpha varieties were reduced. However, the import of bitter hop pellets is partially replaced by extracts, especially from the major beer manufacturers. Total volumes of alpha acid supplies, according to our estimation, decreased by approximately 5% and returned to the level of 2015. Barth Haas Group continues dominating the hop products market; HVG also increased its weight. At the same time, Morris Hanbury significantly reduced the supplies in 2017.
Nigeria. Goldberg, Kronenburg missing in market fray
This is what Goldberg and 33 Lager from Sona Breweries, a Nigerian Breweries (NB) subsidiary, whose majority share is owned by Heineken, and Kronenburg, belonging to Consolidated Breweries, just did, as their products could not raise their heads above waters where beer brands like Star, from same stable of NB and Harp, from Guinness Nigeria Plc hold sway.
Philip Kotler, a marketing professor had posited that there is hierarchy in every market or product category. He posited that, “The first is the market leader, the second is the challenger, third, the follower, the fourth, the market nicher and lastly the new entrant.”
According to Kotler, “a follower or nicher should not challenge the leader.” But it’s unfortunate, in these categories, Goldberg and Kronenburg do not belong.
Kotler further said that the best these unfortunate brands can do is to take their equal or near equal in the market. And that is why these brands are taking on their equal in the market. To make matters worse, these brands do not believe in visual adverts and print, while they have low rate in radio ad, and minimal billboard displays here and there.
However, in the view of Kotler, advertising creates advantage for established brands and creates problems for new (brands), entrants, where the likes of Goldberg, Kronenburg belong. On this note, both brands cannot be said to be new in the market, but have claimed to be new as a result of their inactivity in the market.
Investigation showed that both brands prefer to remain a regional brand, afraid to confront the leaders, may be because of the big spenders’ huge advertising budget, Brand journalists interviewed noted.
A look at the campaign materials of the three brands showed that they have not been doing well in the marketing communications industry, all boiling down to lack of funds to push the brands. On the part of 33 lager, which beer drinkers thought would wrest its way back to the market, failed because of inconsistency on its part.
33 Lager, however, is more visible on the airwaves, it’s selling point being word of mouth advertisement by consumers who often refer others to the beer, extolling its lightness and crispness.
In availability, neither of the beers under comparison outperforms the other. Goldberg and Kronenburg are only available in the Western and Eastern regions respectively. 33’s presence is quantifiable, largely in Lagos where the market resides, this was occasioned by its price differentiation.
18 Apr. 2011