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. 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