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.
Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Grupo Modelo Gains Share in U.S. Market as Victoria Beer Cracks Top 20
Shipments of Modelo brands rose 4.4 percent in the 13 weeks ended July 3 compared with a 1.7 percent increase for all beer imports, Emilio Fullaondo, chief financial officer, said today on a conference call. Case shipments for the U.S. beer industry fell 0.9 percent, he said, citing data from SymphonyIRI Group.
Even amid weak U.S. consumer spending, Victoria surpassed sales of 2 million cases within the first 12 months, Fullaondo said. Modelo, based in Mexico City, first sold the beer in Chicago in June 2010 at a price that tops Corona, the company’s flagship export, he said. Victoria ranks 20th among imports.
“We are very optimistic about the potential for Victoria in the U.S. market as a super-premium import and are working on plans to further expand the distribution,” he said, speaking on an analyst call after the company reported second-quarter earnings.
Modelo, aided by exports, has become the world’s seventh- biggest brewer and the largest seller of U.S. imported beers. Its Corona brand overtook Heineken as the top-selling U.S. import in 1997 and it now has six brands in the top 20, including Modelo Especial and Corona light.
Fullaondo said he hopes Victoria will help boost overall brand sales even as sales of Corona slow from previous years. Modelo started a Corona Beach Getaway marketing campaign as part of “the effort toward maintaining Corona,” he said.
‘Sources of Growth’
“That’s a virtue of having this portfolio,” Fullaondo said. “You have different sources of growth. You’re trying to target different types of consumers.”
Modelo’s brands had sales growth of 4.8 percent during the 13-week period Fullaondo said, citing data from SymphonyIRI, a Chicago-based research firm. That compares to 2.5 percent for all beer imports to the U.S. and 1.3 percent for both domestic and imported beers sold there, he said.
The market-share gains are “a combination of a good portfolio of brands and an increased marketing effort,” said Luis Miranda, an analyst with the Mexican unit of Banco Santander SA. “This trend could continue.”
Modelo is selling Victoria, a medium-bodied beer, in 10 states including California, Arizona, Texas and Colorado. The company may expand the brand into other states before the end of next year, Fullaondo said.
The beermaker said second-quarter net income fell 1.4 percent to 2.89 billion pesos ($247 million) from 2.93 billion pesos a year earlier after taxes rose 34 percent.
19 Jul. 2011