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.
Malaysia. Carlsberg to raise prices slightly
Managing director Soren Ravn said the company would increase prices by an average of less than 3% across its beer product range due to rising raw material and operating costs.
“The increase in prices is not huge, and is in line with inflation, and this reflects our higher input costs. In the next three to six months, we will appropriately hedge raw material prices,” Ravn said after the company's AGM yesterday.
He said the continued rise in prices of raw materials like malt and aluminium for beer cans might have an impact on the company's earnings in the fourth quarter. “Also, there is a level of uncertainty about 2012. If you look at the situation now, next year looks kind of scary.”
This year, key growth drivers for Carlsberg in Malaysia are its imported premium/super premium beer brands such as Hoegaarden and Asahi and Kronenbourg 1664, as well as its global brand relaunch.
For the first time, Carlsberg will share the same core visual identity worldwide, with the same look and feel in terms of packaging and bottles across more than 140 markets it operates.
Ravn said the company aimed to secure a 20% market share of the premium/super premium beer segment this year.
“The premium beer segment is growing faster than the cheaper beer segment. This is where we see the opportunities,” said Ravn, who also pointed out that the company's brewery was nearing its maximum production capacity.
“We have a road map for the next three to five years, to unlock the bottlenecks in the brewery in order to increase capacity without the need for heavy capital expenditure. So, at least we can grow our capacity at the same pace as our volume,” he said.
Ravn expects a maximum growth of 5% for the beer market in terms of volume this year.
“There was a decline in beer consumption in 2009 while we saw a 10% growth in volume for the beer market last year. I think we will see a low single-digit growth in 2011 as 2010 was a sort of catch-up period for the beer market.”
27 Apr. 2011