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.
India. First time in 8 yrs, beer sales dip in summer
The first quarter summer volume sales estimated at 71 million cases (of 9 litre each) was 5% below the year ago period. Maharashtra (-10%) and another key state Tamil Nadu (-13%) pulled down the national figures, said industry executives taking stock of the data. The country's two largest brewers United Breweries (UB) and SABMiller separately confirmed that industry sales dropped between 4 to 5% in the April to June quarter, which is usually the busiest period accounting for nearly one-third of the annualized sales. And it was the first instance of declining summer sales since 2003.
UBS report on 'Beeronomics' was not the first to link economic buoyancy to beer guzzling. Consulting firm McKinsey & Co wrote about how strong gross domestic product (GDP) spurs per capita beer intake almost a decade ago. The premise that automobiles and beer were the first gainers of a positive economic outlook has been a widely held belief. But domestic brewers are not attributing the decline only to the feared economic slowdown. "It was a combination of factors, mostly region specific," said Shekar Ramamurthy, deputy president, UB. "Duty hikes in Maharashtra and Delhi had an impact, while trade consolidation in states such as Punjab and Haryana saw consumer price moving up," he added.
Andhra Pradesh, Uttar Pradesh and West Bengal were among the few states that served up growth for the industry, which was impacted by early monsoon showers as well. The overall national volume was pegged at 230 million cases in FY11, with consumption growing at 12-15% in the past few years. Global beer giants reckon India as their "potentially last big market". Last month, North American brewing giant Molson Coors announced its entry into the country while the iconic Heineken's local brew will hit the market as early as next month.
Still, India's beer consumption remains hostage to fickle regulations and duty hikes that shows up every year. MNCs have long argued that cost of beer, a soft alcoholic drink, is the highest among the world's sizable economies. The average cost of 650 ml beer here is around Rs 70 while more than 90% of China's beer sales is priced below 4RMB, which is just under Rs 28. The domestic guzzlers' affordability of the drink is 1:9 compared to China by purchasing power parity. And worse, China has one beer vend for 295 people as against one for 17,350 people in India.
20 Jul. 2011