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.
Asia Pacific Breweries Advances With New Brewery In Guangzhou
• Further extends Group’s advancement in South China
• Intensifies premium brand strategy
Asia Pacific Breweries Ltd (APB) today celebrated the official opening of the greenfield brewery of Guangzhou Asia Pacific Brewery Co. Ltd (GAPB) in Guangzhou, China. GAPB is a wholly-owned subsidiary of Heineken-APB (China) Pte Ltd in which APB holds a 50% stake.
The RMB400 million (or approximately S$80 million) brewery is situated in the Huangpu District of Guangzhou City. The one million-hectolitre facility is designed to brew Tiger, Heineken and Anchor.
Mr Roland Pirmez, Chief Executive Officer, APB commented, "The opening of the Guangzhou brewery marks an important milestone for APB in China where the Group also owns brewery operations in Hainan and Shanghai. Apart from extending our existing presence in South China, this development is consistent with our vision to become the leading brewer in the Asia Pacific region. Including this new brewery, we now have 29 brewery operations in 13 markets."
The diverse portfolio of brands that the Group offers in China includes the internationally acclaimed Tiger and Heineken as well as the popular Anchor. The commissioning of the new brewery in Guangzhou will enable the Group to further capitalise on the buoyant China beer market and trend of premiumisation, i.e. an increasing desire for fine quality international brands amongst the Chinese population.
Last year, China consumed 448 million hectolitres of beers (approximately 136 billion X 330 ml bottles), 6.3% higher than the year before. Beer consumption per capita stood at almost 34 litres (approximately 103 X 330ml bottles), up from 27 litres (approximately 82 X 330ml bottles) just five years ago. Guangdong is the third largest beer market in China with a volume of 38 million hectolitres. Aligned with rising income, the premium beer segment in Guangdong, already the largest in China, grew 9% in 2010.
Mr Malcolm Tan, Regional Director, China, APB elaborated, "As the brewer of leading International beer brands, Tiger and Heineken, we ensured the local consumers continually found favour with our beer. Leveraging the strong brand equity and the international success of our beer brands have worked well for us in this market that is increasingly leaning towards high end names. Owing to a robust Chinese economy as well as our strategic marketing expertise and distribution network, Tiger and Heineken have grown to be popular premium choices, especially in South China. The new brewery in Guangzhou will thus meet the rising demand for a sustainable beer supply as we further intensify our premium brand strategy in China."
Meanwhile, Anchor and its variants remain a key brand that supports the Group’s portfolio that caters to a wider spectrum of the market.
"Given the strong China economy, the key cities with close proximity to the Pearl River Delta are expected to thrive further. This means that our premium brands and up-market strategy will remain relevant in driving our growth to the next level," added Mr Pirmez.
24 May. 2011