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.
South Africa. Brandhouse beats its chest on gains as the battle for premium beer market hots up
Brandhouse said yesterday it was continuing to gain market share across beer and spirits categories.
“Brandhouse’s beer performance has shown phenomenal growth of over 18% for the period September to February, as compared to the same period in 2009/2010,” said MD Gerald Mahinda. He was speaking to reporters at the company’s newly constructed Sedibeng Brewery yesterday.
About €300m (about R3bn) was invested to construct Sedibeng Brewery, which was officially opened in March last year.
Brandhouse is a three-way joint venture between global beer companies Diageo, Heineken International and Namibia Breweries.
Market analyst Chris Gilmour received Brandhouse’s message with caution.
Comparisons between brandhouse and SAB that include items other than beer are irrelevant. SAB is a brewer while Brandhouse is also a manufacturer and distributor of beer, wines and spirits.
Thus the only meaningful comparative statistic in the Brandhouse press release is the statement that the group’s collective beer market share for the five month period has moved from 12% to 14%. But it should be noted that this only takes Brandhouse’s collective beer market share, Amstel, Heineken and Windhoek, back to where it was four years ago after Heineken took back the rights from SAB to brew and distribute Amstel locally. It is clear that Amstel’s market share has declined from 9% to 10% in 2007 to just over 6% now. Amstel is now the second-largest premium beer in the country after SAB’s Castle Lite.
Mahinda said premium beer brands Amstel, Heineken and Windhoek were growing at almost triple the rate of total beer, at around 19%, reaching slightly over 23% share of the segment.
He said Brandhouse’s share of the spirits market also showed remarkable growth. According to Nielsen data as of the end of February, market share increased from 27.7% to 30%.
Brandhouse’s whisky brands that have gained share include Johnnie Walker Black Label, Bell’s, Johnnie Walker Red Label, Black & White and White Horse.
“We believe the key to our success is offering consumers greater choice and access to quality brands, as well as offering retailers more attractive margins.
“Our fantastic portfolio of beer, spirits, RDTs (ready to drinks), and cider brand allow consumers to access choice in a growing market like South Africa,” Mahinda said.
“That differentiates us from other players in the market. The reason we are investing further, particularly on modern brewing equipment, is because we are growing and we have realised that potential,” he said.
Mahinda said the group would continue developing its model and grow its market share profitably in the coming years.
Since it was opened last year, the Sedibeng Brewery has employed more than 1 000 people, mostly graduates without work-related experience. The company was providing technical training to most of its workforce.
21 Apr. 2011