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.
Ethiopia beer market hots up as Chinese group enters the fray
The company has awarded Chinese manufacturing giant Lehui Group a turnkey contract to build a manufacturing plant with a capacity to produce 300 000 h? a year, and plans to eventually expansion to 500 000 h?.
The plant will be located in Debre Berhan, some 130 km north of Ethiopia’s capital, Addis Abeba.
“After evaluating the technical, financial and project management capacity of the selected turnkey bidders, we have settled on Lehui Group,” says Habesha Breweries CEO Yonas Alemu. He adds that construction of the plant is expected to take 14 months.
Lehui Group is the leading beer manufac- turer is China, which has overtaken the US as the leading beer market.
Although 16 companies had expressed interest in undertaking the project, only three got to the technical and financial evaluation stage. Besides Lehui, the others were Ziemann Ludwigsburg, of Germany, and Techno Export, of the Czech Republic.
Alemu says the company plans to employ about 350 people at the start of brewing opera- tions and to export 20% of its product.
The entry of Habesha is bound to intensify competition in the Ethiopia beer market, which has five manufacturers and where consumption has been growing at an average of 24% a year, according to research done by Access Capital in 2009.
Recently, Heineken completed the acquisition of two State-owned brewers, Bedele Brewery, at a cost of $85,2-million, and Harar Brewery, for $78,2-million.
BGI Ethiopia, a subsidiary of French drinks company Groupe Castel, is currently the largest brewer in Ethiopia, commanding about 50% of the market. Other brewers are Meta Abo Brewery and Dashen Brewery.
19 Jul. 2011