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.
“Sarmat” and “Zhygulivske” beer brands enter market in Georgia
"Miller Brands Ukraine" company starts the development of the Georgian market with the capital of Georgia. "Sarmat" and "Zhygulivske" beer brands appear on sale in Tbilisi in June. Currently, the products of "Miller Brands Ukraine" company are being sold in 70% (more than 2,000) of all trade outlets of the capital of Georgia. The brands are also represented in 9 of the largest regions of Georgia, which is 40% (1,800) of all trade outlets. In the near future, it's being planned to expand market representation of "Sarmat" and "Zhygulivske" by increasing volumes of supplies to the districts.
The products of the Donetsk brewery acquired by SABMiller plc in 2008 were represented in Georgia before. Those supplies, however, were irregular. After "Miller Brands Ukraine" concludes a distribution agreement, the products' supply will be performed on a regular basis. As of today, the volume of supplies has been increased 12 times, and the numbers are expected to grow as the company plans mass advertising of its products.
"The beer market in Georgia is now actively growing; it's on the fast track. Its potential allows us to count on a certain product niche that our brands can occupy," says Yuriy Usharov, Sales Director, "Miller Brands Ukraine." "We are positive our beer can give both local and international brands represented on the Georgian market a good run."
"'Sarmat' and ‘Zhygulivske' are well-known, even legendary, brands in Georgia. Our consumers not only enjoy the taste of genuine classic beer, but also feel nostalgic for, say, ‘Zhygulivske' brand which they remember and have loved for decades." Nukri Totradze, Business Development Director of Trade & Development, comments on the beginning of the partnership, "We put high hopes on ‘Sarmat' and ‘Zhygulivske,' and we are sure they will succeed on the Georgian market."
About SABMiller plc
SABMiller plc is one of the world's largest brewers, with brewing interests and distribution agreements across six continents. The group's wide portfolio of brands includes premium international beers such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft (draught) and Grolsch, as well as leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is also one of the world's largest bottlers of Coca-Cola products.
About Miller Brands Ukraine
PJSC Miller Brands Ukraine is a subsidiary of SABMiller plc. In July, 2008 SABMiller plc acquired 99.84% of JSC Sarmat. At the end of 2010 the company changed the name from JSC Sarmat to PJSC Miller Brands Ukraine. The brand portfolio of Miller Brands Ukraine includes local brands like Sarmat and Zhygulivske, as well as well-known international brands: Miller Genuine Draft (draught) (imported), Zolotaya Bochka (Russian premium brand, produced in Ukraine under licence), Velkopopovicky Kozel (Czech premium brand, produced in Ukraine under licence) and Amsterdam Mariner (Dutch brand, produced in Ukraine under licence).
This SABMiller subsidiary news release has been translated from its local market language to English language for publication on www.sabmiller.com. We have attempted to provide an accurate translation of the original material but due to the difficulties of translation slight differences may exist.
21 Jun. 2011