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.
Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Beer Drinking and What It Says About China’s Economy
By 2007, the Chinese were drinking almost 103 beers per adult a year. While that’s still considerably less per capita than in beer gardens like the Czech Republic (where the average adult drinks about 471 beers a year) it’s enough to make China by far the world’s largest market for beer.
That story can be repeated for any number of consumer goods, of course. But what’s interesting about beer is that the trend is not likely to last. A paper by two economists at the University of Leuven, in beer-loving Belgium, finds that people drink more beer as their incomes rise, until they make about $22,000 a year.
Then they start drinking less beer.
The paper, brought to my attention by the Reuters blogger Felix Salmon, doesn’t offer much in the way of explanations, but perhaps the most obvious one is something many Americans personally experience in their 20s. As you start making more money, and assuming more responsibility, there is less opportunity to drink -– and the potential consequences become more costly.
People also start drinking more wine.
The paper notes that patterns of alcohol consumption are converging, diminishing the long-standing, much-caricatured division of Europe into a wine-drinking south and a beer-drinking north. (The history of these divisions is well-told in the delightful book “A History of the World In Six Glasses.”)
“Increased openness to trade and globalization has contributed to a convergence in alcohol consumption patterns across countries,” write the authors, Liesbeth Colen and Johan Swinnen. Wine drinking increased in places like Germany and Belgium, while beer drinking spiked in Greece and Spain. (France, however, is sitting out the trend.)
This suggests, notes Mr. Salmon, that the Chinese inevitably will start drinking more wine. Much the same thing appears to be happening in Brazil, Russia and other emerging markets. But not in India, where the major religions frown on drinking alcohol, and neither beer nor wine is heavily consumed.
27 Apr. 2011