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.
Ireland. New report shows marked shift in beer sales from the on to the off trade in 2010
· Irish Brewers Association call for supports for pubs, bars, and restaurants
The share of beer sold in Irish pubs fell significantly in 2010 according to the Irish Brewers Association (IBA). Despite the fact that the Irish beer market showed signs of stabilisation in 2010, following a decade of falling consumption, there was a marked shift in volumes from the on-trade to off-licences and supermarkets.
Commenting on the data, contained in the IBA’s Irish Beer Market 2010 report, Senior Executive Stephen Lynam said “The report contains good news and bad news for Ireland’s brewing sector. Although sales are down, the decrease is relatively minor compared to recent years. The steady decline of the last ten years, which accelerated in 2008 and 2009 has slowed.
“Net exports are up, and production in Ireland’s breweries has increased as well.
“Unfortunately, the report shows the continuing decline of the pub sector. We already know that the pub trade has lost a quarter of its business in the last few years, and this has had a subsequent impact on beer sales. Simultaneously, we have seen an increase in beer sales in off-licences and supermarkets. 33% is sold in the off-trade, up from 29% in 2009.
“The report shows that for the first time beer’s share of the alcohol market has fallen below 50%.
“Other results from the report show that lager continues to dominate the beer market, with 60% of sales, and Ireland’s per capita beer consumption stands at around 90 litres- much less than countries like the Czech Republic and Germany.
“Uniquely among alcohol categories, the Irish brewing industry invests over €400m in the Irish economy to produce, market, export and sell its products. Beer production remains the most important within the drinks industry in terms of indigenous manufacturing, providing jobs in major brewing facilities throughout the country.
“IBA members directly employ over 1,400 people in their operations. Employment in supplying sectors arising from beer production and sales is estimated at 5,000 jobs while employment generated in other sectors linked to the beer industry is estimated at 35,000.
“What is more, the beer industry invests over €100m in Irish agricultural products and supports over 3,000 farming families. Three quarters of the malted barley used to make beer in Ireland is sourced locally.
“The report shows how important it is to encourage people back into the great Irish pub and to protect the domestic market. We hope that the measures announced recently in Jobs Initiative will help that happen.”
9 Jun. 2011