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.
US. Small craft beer brewers on cusp of toasting potential victory
Under SB 754, which was approved by the House this week, fledgling brewers producing up to 15,000 barrels of beer each year would be allowed to self-distribute as much as half their volume. Quinn has signaled he would sign the bill, to the relief of the state's smallest breweries.
"It's really important for small brewers and a small step forward for breweries in Illinois," said Chuck Stuhrenberg of Murphysboro-based Big Muddy Brewing, the state's smallest brewer, which will produce 500 barrels this year. "The first couple of years are critical stages when you're pouring all of your money and profit into the business to help it grow, to have enough business to turn it over to distributors, so it's definitely a positive bill."
In most states, including Illinois, the alcohol business is divided into three tiers — a manufacturer, a retailer and a distributor. The system, put in place at the end of Prohibition, was designed to ensure a properly regulated market.
Several years ago, the Illinois Liquor Control Commission began granting distribution licenses to craft brewers, causing confusion about the issue of self-distribution, said Bill Olson, president of the Associated Beer Distributors of Illinois.
The bill at Quinn's desk would assist small breweries, which maintain that getting distributors to carry their little-known products is nearly impossible. They say they need to peddle their beers directly to establish a following. But the legislation would not extend the self-distribution privilege to brewpubs, unless they're willing to invest in a separate brewing facility.
"It's very confusing to say (this bill) protects craft brewers," said Josh Deth, managing partner of Chicago brewpub Revolution Brewing Co. and director of the craft guild. "This was a distributor's bill. This was their language."
While Revolution is building a $3 million brewing facility, many other brewpubs can't afford a separate facility or wouldn't sell enough beer to justify one.
Brewpubs are classified as restaurants that make beer on premises. They weren't legal in Illinois until the 1990s. Brewpubs are allowed to sell 30,000 gallons of beer for off-premise consumption, including sales from growlers — jugs for customers to take home.
Proponents of the craft beer legislation say giving fledgling brewers the right to self-distribute their products likely will foster new brews and protects the state's two smallest beer-makers from being squeezed out of the market.
David Henkes, vice president at Chicago-based Technomic, said the bill isn't just "good news for the small craft brewers in the state."
"It's a win for consumers as well, who are looking for increased variety in restaurants, bars and pubs."
The genesis of the legislation was when Anheuser-Busch filed a lawsuit last year after being barred from buying City Beverage-Chicago. The St. Louis-based beer giant noted that several small brewers had licenses to self-distribute and called the disparity "discrimination against interstate commerce." The matter was referred to the Legislature for clarification, and a bevy of lobbyists descended on Springfield.
Gary Rutledge, general counsel for Anheuser-Busch, said the company would continue to evaluate its options.
In the meantime, the legislation had an unintended consequence for one small brewer after the liquor commission became aware that the business owns a distributing company.
Warrenville-based Two Brothers Brewing Co. and Windy City Distribution are jointly owned by the Ebel family. Anheuser-Busch court documents filed last month claim that the commission recently asked the family to change the ownership of the distribution company. Windy City distributes more than 45 small craft beers.
The liquor commission declined to comment, but in an emailed statement from executive director Gloria Materre, it said it supported the bill.
Two Brothers did not immediately respond to requests for comment. In an affidavit, Two Brothers co-founder Jim Ebel said, "There would be significant negative consequences from having to sell Windy City, including on its employees."
30 May. 2011