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.
USA: Small and independent brewers account for about 5% of all the beer enjoyed in the US and 50% of brewery jobs
In a so called “Dear Colleague letter”, the two Senators Baucus and Crapo noted, “In recent years, the more than 1,700 craft brewers all across America have met growing consumer demand for their products by brewing flavorful and innovative beers which they encourage Americans to enjoy in a responsible manner. These small and independent brewers…generate more than $3 billion in wages and benefits, and pay more than $2.3 billion in business, personal and consumption taxes.”
Mirroring the House Small Brewers Caucus, formed in 2007, the Senate Small Brewers Caucus provides a forum for members of the Senate and their staffs to discuss the issues important to small brewers while exploring what lawmakers can do to strengthen the growth and role of these small businesses in local economies across the country.
The caucus will also provide opportunities for Senators and staff to learn about the science and art of brewing beer, and the unique cultural and economic contributions made by small brewers to their communities.
Currently, the 1,700+ small American breweries account for about 5% of all the beer enjoyed in the United States and 50% of brewery jobs – totaling some 100,000 good-paying part- and full-time positions across the country.
“Montana’s small brewers don’t just make great beer out of the best Montana grains – they also support good-paying Montana jobs,” said Senator Baucus. “I’m so proud to create the bipartisan Senate Small Brewers Caucus – because as the state with the second highest number of craft brewers per capita in the country, Montana small brewers need a voice in Congress who’ll keep looking out for them.” Montana boasts a strong brewing community, which generates and pays taxes on approximately $20 million of revenue, according to the Montana Brewers Association.
“As a major producer of barley, wheat and hops, Idaho has a growing role in the craft brewing business,” Senator Crapo said. “While advocating for the excise tax relief bill, I’ve had the opportunity to meet with many of Idaho’s small craft brewers and heard firsthand from local entrepreneurs about the opportunities for economic growth and job creation that the industry can provide. This caucus will provide Senators with a better understanding of all aspects of small brewing and the positive impact it has on their communities.” Senator Crapo, along with Senator John Kerry (D-Mass.), introduced this session’s Senate bill, which would recalibrate excise taxes on America’s small brewers. Joining Senators Kerry and Crapo were 17 of their Senate colleagues who signed on as original co-sponsors.
“Small craft brewers are growing, creating jobs and contributing in small and big ways to the recovery of the American economy,” said Charlie Papazian, president, Brewers Association. “The bipartisan establishment of the Senate Small Brewers Caucus reflects the collaborative, grassroots community spirit in which the nation’s small brewers contribute to their local communities.”
American Brewers Association
22 Jun. 2011