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.
African tax forum dissects SABMiller
It believes the move marks the beginning of a period of greater scrutiny of the tax position of multinational companies operating in Africa.
The decision to discuss SABMiller at the forum meeting, which is to be held in Cape Town on June 28, appears to have been prompted by a critical report written by ActionAid, which was released last year. Martin Hearson, the author of the report, which accused SABMiller of depriving African countries and India of substantial amounts of tax income as a result of its aggressive tax management policies, has welcomed the meeting.
He said this meeting represented a positive step in attempting to redress the resource imbalance between powerful multinational companies and individual African countries. Hearson said it was very encouraging to see the effort that was being put into building capacity among the tax authorities in Africa.
“This will be the first time African countries are meeting to discuss one case… Given the imbalance of resources and power between the multinationals and individual tax authorities, it is very positive to see the tax authorities working together like this.”
He believed it would lead to “a very different environment in Africa. We will find tax avoidance and evasion will come under increasing scrutiny.”
A spokesman for SABMiller said that the company had not been invited to participate in the meeting and that the brewer was unsure as to whether or not it was going to be discussed during the meeting.
Forum executive secretary Logan Wort told the Wall Street Journal last week that the forum’s mission was to train and provide technical support to tax officials in member countries so they could plug tax “leakages”.
He said there was no witchhunt. “The meeting doesn’t mean action will be taken against SABMiller.” Wort was not available for comment.
Hearson welcomed calls for the Group of 20 (G20) countries to require improved disclosure by multinational companies listed in their jurisdictions. He said any company listed in one of the G20 countries should be required to disclose details of profits earned and tax paid in each country it operated in.
ActionAid’s report on SABMiller claimed the beer group’s tax avoidance measures cost four African countries and India as much as ?20 million (R217m) a year.
SABMiller rejected ActionAid’s allegations and said it did not engage in aggressive tax planning. Its shares fell 1 percent to R236 on Friday.
21 Jun. 2011