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.
Denmark. Royal Unibrew’s “positive earnings trend continues” in Q1 2011
“In light of the timing of Easter, we are content to have on the whole maintained our revenue while defending or winning market shares. And not least, we are pleased that, in spite of the revenue development, we have been able to continue improving our financial results. In Q1 we also finalised the agreement concerning the merger of Royal Unibrew Polska with Polish Van Pur, which is a significant step towards achieving the targeted position in Poland. All in all we have now realised the major structural changes of our business, which means that we can focus completely on developing our existing activities and on realising the strategic targets established for 2011?, says Henrik Brandt, CEO.
•Generally market shares were won or defended on branded beer as well as soft and malt drinks.
•Net revenue declined by just below 5% to DKK 745 million. Adjusted for the sale of the Caribbean breweries and the Polish activities, the organic revenue decline was below 1%.
•EBITDA increased by DKK 12 million to DKK 76 million.
•Earnings before interest and tax (EBIT) increased by DKK 30 million from 2010 amounting to DKK 40 million.
•Profit before tax amounted to DKK 21 million compared to a loss of DKK 21 million in 2010.
•Free cash flow amounted to a negative DKK 28 million in Q1 2011 compared to a negative DKK 6 million in 2010.
•Net interest-bearing debt increased by DKK 45 million in the quarter to DKK 815 million.
Royal Unibrew maintains the outlook for 2011 as announced in March 2011 as follows:
•Net revenue: DKK 3,400-3,550 million
•EBITDA: DKK 575-625 million
•EBIT: DKK 435-485 million
4 May. 2011