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 Expects Colombia Volume Sales Rebound In 2011
Richard Rushton, president of SABMiller's Colombian unit Bavaria, said in an interview Tuesday that "we would expect volumes to start to reflect growth in the low to mid single digits in a reasonable short term such as in the next 12 months."
The company's medium-term guidance is for 4% to 6% volume growth, but Rushton said he was unsure that growth for this year would be within that range.
"I'm not sure it's going to be 4% to 6%," he said.
The company's main concern now is a harsh rainy season, which can affect distribution. "I'm a little cautious until we see the clouds lift," he added.
SABMiller's volume sales declined 6% for the 12 months through March 2011, the company said in a statement. The contraction in Colombia was fueled by an emergency tax levied in February 2010 that the government used to plug a deficit in public health services.
After keeping prices mostly unchanged for a few years, the company also hiked prices by 8.3%, something which "had an immediate impact on our volume performance," Rushton said.
The last tranche of the tax hike came into effect in February 2011, increasing the consumer tax on beer from 14% to 16%, but the company decided not to increase prices.
"We're pursuing price constraint aggressively," Rushton said.
Adding to the impact of the higher tax on volume sales, 2010 was an electoral year in which alcohol sales were banned during several weekends. Another woe facing the company was a devastating streak of torrential rains in November and December that crippled roads and made several regions inaccessible to delivery trucks during months in which beer consumption usually jumps.
"A perfect storm hurt us," Rushton said.
But the impact of the higher tax is "bottoming out," he said, and the company posted beer volume growth in February and March from a year earlier.
"We're seeing reasonably encouraging signs that the clouds are lifting," he said.
An ongoing concern, however, is the downpours that have recently restarted in much of the country, once again blocking key roads. But it is only a matter of time before the rains cease, Rushton said.
"We're optimistic that we will see the end of this weather and with the end of the weather we will start to post some volume growth," he added.
SABMiller has a dominant position in Colombia, controlling 97% of the beer market. Strong economic growth should filter down to higher consumption, which should help fuel growth, Rushton said.
"We're cautiously optimistic that some of the benefits of higher economic growth will filter through," he said. Government officials have said that economic growth in 2011 could surpass 5.5%.
The government is taking the right steps in making efforts to upgrade Colombia's shaky infrastructure and broaden its tax base, something that could also help the unit, Rushton said.
"The government is trying to allow the private sector to grow and to create conditions for growth," he said. SABMiller pays nearly 3.7% of the total national tax intake.
The government is also taking steps to curb the sale of contraban and adulterated liquor, something that should help boost SABMiller's beer sales, Rushton said.
Beer consumption in Colombia is still below other countries in the region, something that gives "plenty of room for growth," he said.
20 Apr. 2011