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.
Tsingtao to open new brewery in Jieyang
The plant’s annual capacity is expected to amount to 600 million liters. The company plans to start building the new plant at the end of July 2011 and to start production in July 2012. Tsingtao will invest 800 million yuan in the new brewery that will produce bottled and canned Tsingtao Beer and Shanshui Beer. The new plant will employ the latest in brewing technology and is said to be the most energy efficient beer factory in China,, it is reported. The brewery will have an attached consumer experience center.
According to Huang Kexing, the company’s vice president, Tsingtao’s beer sales have been growing in the high-end market in in Guangdong province in the past few years and the new plant is build to meet the growing consumer demand in this market. Tsingtao Brewery will not only bring jobs, revenue, cash flow, business flow, logistics and other physical capital to the region but the investment might also attract other companies to invest in Jieyang, Huang Kexing further said at the signing ceremony.
The opening of the brewery in Jieyang is another step to the company’s declared goal to expand its annual beer production and sales volume from 6.35 billion liters to 10 billion liters over the next three years. Rizhao, Xiamen, Fuzhou, Yangzhou, Suqian, Langfang, Zhuhai, Wuwei, Shijiazhuang, Tsingtao has a lot of projects to achieve the capacity. Currently, Tsingtao Brewery has more than 50 breweries in 19 provinces and cities.
Tsingtao Brewery is one of the oldest beer producers in China, founded in 1903 by German and British merchants. Through a century’s development, the brand has entered more than 70 countries and regions including the United States, Japan, Germany, France, the United Kingdom, Italy, Canada, Brazil and Mexico.
1 Jul. 2011