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 Board Management Changes
Malcolm will be replaced by James ("Jamie") Wilson, currently Finance Director for SABMiller Europe. Jamie joined SABMiller in 2005 and has held a number of senior positions in the group, including Senior Vice President, Market Development and Strategy, Miller Brewing Company, USA; Managing Director, SABMiller Russia; and Managing Director for SABMiller's Central European businesses.
Jamie has 23 years of experience in the global beverage industry, having held a number of senior executive positions before joining SABMiller, notably Group Finance Director and Managing Director - Operations of Highland Distillers plc; Executive Chairman of Maxxium, the international drinks distribution business; Managing Director of Orpar SA, the parent company of Remy Cointreau; Strategy/Finance Director for Scottish Courage Ltd; and Strategy/Project Director for Scottish & Newcastle plc. He has a law degree from the University of Edinburgh, is a qualified chartered accountant and is a member of the Chartered Institute of Taxation.
Jamie becomes deputy Chief Financial Officer of SABMiller with immediate effect, but he will retain his responsibilities as Finance Director for SABMiller Europe until his replacement is appointed.
Malcolm Wyman leaves SABMiller after 25 years of service. He first joined The South African Breweries Ltd in 1986, after a successful career in investment banking in South Africa, and was appointed to the board as Group Corporate Finance Director in 1990. He transferred onto the board of South African Breweries plc upon its listing on the London Stock Exchange in 1999, and became Chief Financial Officer in 2001 with responsibility for the group's finance operations, corporate finance and development, and group strategy. Following his retirement, Malcolm will continue through a consulting arrangement with SABMiller, to provide advice and support to the company.
Graham Mackay, SABMiller group chief executive, commented:
"We owe Malcolm a deep debt of gratitude for the pivotal role he has played in SABMiller's transformation from a small regional business into a leading global brewer. He has made an outstanding contribution to the significant growth of the group through his leadership of our corporate finance activities, which included the transformational transactions with Miller Brewing Company in the US and the Bavaria Group in South America. He has brought a unique and insightful perspective to all of our financial activities.
"His extraordinary dedication, wisdom and good judgement, combined with an unfailing sense of humour and "steadiness under fire" will be greatly missed by me personally and all in the business.
"We all wish Malcolm and his wife Gill a long and happy retirement.
"In Jamie we are fortunate to gain an outstanding talent, with a considerable breadth of industry experience, acquired both within SABMiller and the wider alcohol beverage sector.
"He combines a unique operational, commercial and financial perspective with a proven track record in the business. I believe that his leadership will further enhance the commercial focus of the finance function, ensuring that we leverage value from the range of business capability initiatives that we are progressively implementing throughout the group."
4 May. 2011