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 plc announced annual results for fiscal year 2011. The group’s Ukrainian subsidiary showed excellent volume growth.
SABMiller delivered very strong financial results. Trading conditions across the group were mixed with improvements in most of the emerging markets. Total beverage volumes of 270 million hl were 3% ahead of the prior year on an organic basis (i.e. excluding growth resulting from M&A's), with lager volumes up 2%, soft drinks volumes up 3% and other alcoholic beverages up 22%. Volume growth was also accompanied by share gains in a number of markets. Group revenue grew by 7%, driven by the higher volumes, selective price increases in the current and prior year, as well as favourable brand mix, all reflecting the strength of SABMiller's brands.
The group's financial highlights include:
|Financial highlights||2011, US$m||2010, US$m||% change|
|Profit before tax||3,626||2,929||24|
|Adjusted earnings per share:|
|Dividends per share (US cents)||81.0||68.0||19|
|Free cash flow||2,488||2,028||23|
Miller Brands Ukraine (a subsidiary of SABMiller since July 2008) achieved an impressive total volume growth of 21% in the year ended 31st March 2011. Almost half of that growth came from premium licensed brands, recently introduced by the company: Miller Genuine Draft, Velkopopovicky Kozel and Zolotaya Bochka. In this respect Miller Brands Ukraine became No. 2 among SABMiller's subsidiaries in Europe, second only to the company's UK operation which recorded 23% growth in lager volumes.
Throughout the year the Ukrainian subsidiary of SABMiller has paid a total of almost UAH 138 million in taxes, making Miller Brands Ukraine an important contributor to the country's well-being and economic development.
Igor Tikhonov, General Director of Miller Brands Ukraine, said:
"Last financial year was a good one for the company. SABMiller entered the Ukrainian market by acquiring JSC Sarmat in 2008, and since Day 1 we have been working hard on upgrading the production facilities and business processes, to meet the very demanding global quality standards of SABMiller group. We have completed the task, and to signify the considerable improvements that we have made to the original company, last year we changed the name from Sarmat to Miller Brands Ukraine. Our results in financial year 2011 prove that it wasn't a simple change of a sign-board with the company name. The improved production quality combined with efficient marketing and sales processes led to significant volume growth. I'm especially glad to note the excellent performance of our licensed brands last year. The premium segment is where SABMiller is really strong in many countries of the company's presence. This segment is also a strategic focus for Miller Brands Ukraine, the area where we see our future in this market."
23 May. 2011