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: Russia Growth Back on Track
"The last couple of years have been challenging, but the market is now back on the growth track," Mr. Buhl Rasmussen said in an interview.
Copenhagen-based Carlsberg, which holds a market share of around 40% in Russia through its ownership of the Baltika Brewery, Russia's largest beer producer, expects Russian beer consumption will return to pre-crisis levels by 2015.
Average Russian beer consumption reached almost 80 liters per head prior to 2008, when oil prices reached record highs fuelling Russia's energy-dependent economy. In some big cities like St. Petersburg, consumption reached 100 liters per person.
However, a three-fold increase in beer tax at the beginning of 2010, which let to a 25% rise in beer prices, coupled with the economic downturn caused average beer consumption to fall to just 66 liters a person last year.
Mr. Buhl Rasmussen forecasts a small growth in the market this year, but expects an annual growth rate of between 3% and 5% in the medium term. Russian beer consumption grew 1.5% in the first quarter, but an unusually cold April could affect the second quarter, the CEO said.
The beer market's recovery has been slowed by escalating costs. Commodity and labor costs in Russia are expected to rise 10% this year, compared to an average increase of 5% in other markets, Mr. Buhl Rasmussen said.
Rising commodity prices are causing problem across all regions, but a severe drought last summer that cut Russia's grain harvest by a third has forced the brewer to import grains.
"The hardest hit region is by no doubt Russia," Mr. Buhl Rasmussen said. "We can't absorb the higher costs. In the end, the consumers will have to pay for the rising commodity prices." So far this year, Carlsberg has increased its beer prices in Russia by 7% to 8%, he said.
21 Jun. 2011