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.
Consolidated Breweries may acquire Benue, Champion breweries
Mr. Ed Weggemans, General Manager, Commercial, disclosed this at the 2010 customers conference in Enugu, tagged, A Winning Partnership: Mission Possible’, and reward for its distributors porformance for the year ending May 2010, where he said the company recorded improvements in all indexes of its growth, while pointing out that the company was appreciative of the distributor’s performances which contributed to the growth recorded by the company in 2010.
The General manager explained that the planned acquisition of Benue Brewery Ltd, and Champion Breweries Plc would impact positively on the fortunes of Consolidated Breweries, if approved by Consolidated Breweries shareholders, which he said is currently coping with limited scope for future expansion and growth due to capacity constraints.
Weggemans, while sharing business plan for 2011 with the distributors said, 2010, though challenging, was nonetheless a successful year for the company and its business partners.
According to him, “Consolidated Breweries, as a proactive company, is seizing opportunities provided for business growth. AWe have continued the upgrading of our brands and have witnessed especially good results from our flagship brand A33? Export while other brands, Turbo King, Hi-Malt and Maltex showed significant growth,” he said.
He went further to say the company is also consolidating on the acquisition of DIL/Maltex brand after the brands successful re-launch has restored the brands to their true position.
Inn distributors award, customers were for the Highest Volume Sold for each brand in the company’s portfolio. The Managing Director’s prize for outstanding growth in 2010 was a 3.5-ton, 400 crates capacity fully branded delivery truck which was won by Mr Uche Emmanuel Alaribe, Managing Director, Uche Alaribe & Sons Enterprises.
In a related development, the high point of the Award was the raffle draw in which in which a 3.5 ton 400 crates capacity fully branded delivery truck was won by Mr Silas Nnawuba, Managing Director, Silas Nnawuba & Co, based in Owerri.
30 May. 2011