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.
China Resources Enterprise total beer sales volume rise 10.3% in Q1 2011
The Group’s beer division reported a turnover of HK$4,902 million and earnings of HK$20 million for the first quarter of 2011, representing year-on-year increases of 20.1% and 5.3% respectively. The Group’s total beer sales volume increased by 10.3% to approximately 1,908,000 kiloliters in the first quarter of 2011. Benefiting from a series of unique marketing campaigns that further enhanced its brand image, the sales volume of the Group’s national brand “?? Snow” increased by 11.2% to approximately 1,725,000 kiloliters, accounting for more than 90% of the Group?s total beer sales volume.
The rapid increase in the cost of primary and secondary raw materials, higher labour costs and taxes such as the Urban Maintenance and Construction Tax and Education Surcharges imposed on foreign enterprises increased the operating costs. Nevertheless, the beer division strove to lift the sales of premium beers and optimize its product mix in order to improve its average selling prices and relieve cost pressure. As at the end of March 2011, the Group operated over 70 breweries in China, which altogether had an aggregate annual production capacity of more than 14,600,000 kiloliters.
The Group?s beverage division reported a turnover of HK$567 million and earnings of HK$10 million for the first quarter of 2011, representing year-on-year increases of 49.2% and 42.9% respectively. With its flagship purified water brand “?? C?estbon”, the division?s total sales volume rose by 40% to approximately 522,000 kiloliters. During the quarter under review, the division rapidly expanded its market coverage in Jiangxi, Yunnan and Henan. In the more established markets such as Guangdong, Sichuan, Hunan and Jiangsu, the division achieved sustained growth in sales volume through continuously enhancing its distribution channel management. To tackle rising raw material costs, the division made appropriate adjustments to its sales strategy in Sichuan and Guangdong to encourage distributors to stock up more products, which led to notable growth in sales volume.
In view of the huge growth potential in China?s fast-developing beverage market, the Group has established a joint venture with Kirin Holdings Company, Limited that is 60% owned by the Group. The two companies would each inject their respective existing non-alcoholic beverage operations in China into the joint venture. The Group is confident that this joint venture will facilitate the division to become a powerful contender in China?s non-alcoholic beverage market.
Mr. Qiao Shibo, Chairman of China Resources Enterprise, Limited, said, “The Group’s sustained growth in the first quarter of 2011 has enhanced the leading position of our consumer businesses in China. Looking ahead, we expect China’s consumer market to remain promising. We will actively pursue both acquisition opportunities and organic growth so as to further strengthen our core businesses.”
24 May. 2011