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.
Lawmakers seek veto of provision affecting craft brewers
“Wisconsin is known for its breweries and allowing small craft brewers to own their own taverns will highlight their product,” said state Sen. Glenn Grothman (R-West Bend). “This is the type of provision that should have been dealt with in a separate bill. It was complicated and the thriving craft brew industry did not participate in drafting this provision.”
Supporters of the provision, which include MillerCoors MillerCoors
Follow this company LLC, claim the legislation is needed to stop St. Louis-based Budweiser and Bud Light brewer Anheuser-Busch Cos. Anheuser-Busch Cos.
Follow this company from buying wholesale distributors in Wisconsin. The vote sends a strong message to the nation’s dominant brewer, which has been pursuing a national agenda to develop so-called brewery branches throughout the country, backers of the provision said.
Chicago-based MillerCoors operates a major brewery and administrative offices on Milwaukee’s west side and is Anheuser-Busch’s main rival in the U.S. market.
However, many of the state’s craft brewers have voiced opposition to the measure, claiming that the current system has helped foster their growth.
The provision “sends the wrong message to nascent businesses” and restricts possible avenues of growth, said state Sen. Pam Galloway (R-Wausau).
“It was particularly disturbing in that it came out of the blue with no time for craft brewers to respond,” Galloway said.
The Wisconsin Brewers Guild, which represents craft brewers, is against the legislation. The guild opposes a long line of supporters that include the Wisconsin Beer Distributors Association Wisconsin Beer Distributors Association
Follow this company , the Tavern League of Wisconsin Tavern League of Wisconsin
Follow this company , the Wisconsin Grocers Association Wisconsin Grocers Association
Follow this company , the Wisconsin Petroleum Marketers & Convenience Stores Association, the Wisconsin Wine & Spirits Institute and MillerCoors.
The provision combines the brewer’s permit and wholesale and retail licenses into a single permit under state — not municipal — control that effectively bans brewers from having ownership stakes in wholesale distributors. Under the current law, brewers must obtain three separate licenses — a brewer’s permit, a wholesaler’s license and retail license.
The legislation prohibits wholesale distributors from investing in a brewery, but grandfathers in any existing deals. Breweries that produce fewer than 300,000 barrels of beer each year could sell their own product without a distributor.
Elected officials “were not given adequate information before we were forced to vote on this provision,” said state Sen. Robert Jauch (D-Poplar), a member of the Legislature’s Joint Finance Committee.
Small businesses, including craft brewers, are leading Wisconsin’s economic recovery, said state Rep. Evan Wynn (R-Whitewater).
“Wisconsin should be moving in a business-friendly direction and not legislating more needless government regulation,” Wynn said.
The state has “no business punishing these small entrepreneurs,” the group of seven legislators stated in a letter to Walker.
The budget provision will force brewers to change their business models and “hurt their chances of survival,” they said.
Walker's office said the governor will consider the veto request, but did not take an immediate stance.
“We’ll evaluate that provision and make any veto-related announcements once the decisions have been finalized,” Walker spokesman Cullen Werwie said.
23 Jun. 2011