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.
India. Carlsberg launches super premium strong beer
Unlike other global markets, as much as 80% of the 17 million-hectolitre (1 hectolitre = 100 litre) beer market in India is strong beer. This refers to beer with alcohol content higher than 5%.
But brewers have restricted launches in the premium to super premium segment to mild beer brands (those with alcohol content lower than 5%). Take SAB Miller's Foster's, Anheuser-Busch Inbev's Budweiser, United Breweries' Kingfisher Ultra and Carlsberg's eponymous brand. United Breweries is also slated to add Heineken to this segment this year.
Carlsberg, a late entrant in India, has aggressively expanded brewing capacity and launched a brand a year since 2009. Carlsberg Elephant is the India subsidiary's second introduction in the strong beer segment in year.
It's Tuborg Strong brand, positioned for younger consumers, has emerged its biggest brand by volume. It exceeded sales of 1 million cases in seven months of launch, the company said.
"There were no premium alternatives to trade up to in strong beer. Encouraged by Tuborg Strong's sales we expect consumers to trade up further," Carlsberg India MD Soren Lauridsen said. Carlsberg Elephant is priced at a 40% premium over Tuborg Strong at Rs 100-120 for a 650 ml bottle.
The Elephant name is inspired by elephant statues that man the entrance to its Copenhagen brewery.
The company said it may have to take a more educational path to build this brand in India. "We need consumers to try out the brand first as Indians have not been used to paying high for strong beer," Loridsen said.
The India beer market has grown over 10%, one of the fastest in the world which has enlisted strong competition from international players. United Breweries dominates the industry with more than half the market share followed by SAB Miller.
Carlsberg, which claimed which claims 6.2% market share (excluding Tamil Nadu) as of April, acquired control over 90% of its India operations after it bought out partner Lion Brewery Ceylon earlier this month. The Sri Lankan partner had said it was exiting the company because India investment requirement was high at $200 million over the next few years.
29 Jun. 2011