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.
Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Carlsberg sees Russia beer market up 3-5 percent
Carlsberg is the beer market leader in Russia, where it owns the best-selling Baltika brand, with a near 40 percent market share.
"We see a return to growth in 2011 after a couple of years of steep declines. We see growth of 3-5 percent over the next three to five years," Jorgen Buhl Rasmussen told Reuters Insider television.
He said that Carlsberg should grow its market share in Russia over that period, and expected the company to slightly outpace the 3-5 percent market rate.
The last two years have been very difficult with the crisis and a significant beer tax increase. But this year there is growth to look for," he said on the sidelines of the World Economic Forum in St Petersburg.
Carlsberg, the world's fourth biggest brewer and owner of the brands Kronenbourg and San Miguel as well as Baltika, had earlier forecast 2-4 percent Russian market growth for 2011.
Rasmussen said the best hope for brewers in Russia was that the government would be successful in its long-running mission to combat alcoholism, a problem he said could be solved with more beer drinking.
"Around 70 percent of all alcohol consumed in Russia is through vodka, so if the government is serious about reducing alcohol consumption it should lead to more beer drinking. Remember, beer is a low alcohol drink," he said.
He said Russians were consuming an annual 80 liters of beer a head in 2008, in line with a western market, but this had dropped to 66 liters as the economic crisis and a 200 percent hike in beer taxes took their toll.
Carlsberg's heartland in western markets is saturated, heightening the importance of emerging markets in eastern Europe and Asia.
"If you look across our markets, in general there is an improvement on 2010. It is still challenging in western Europe, in eastern Europe we are back to small growth, while Asia is growing fast," he said.
When asked how to address the decline in western markets, he said "I am not sure we are able to."
17 Jun. 2011