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.
Russian beer: crying in their cups
While beer has escaped authorities’ attention until now, a bill signed into law by Medvedev on Wednesday will curb beer sales between 11pm and 8am, and ban it at drinkers’ favourite points of purchase: kiosks, airports and train stations.
The new law will classify beer as alchohol for the first time and pertain to all beverages with an alchohol level above 0.5 per cent.
Though the law won’t take effect until 1 January 2013, it will mark a big change for Russia’s beer market. Currently, about a quarter of Russia’s beer sales take place at kiosks, transport hubs and petrol stations – the soon-to-be-banned points of sale.
The news is a big concern for Carlsberg, which relies on Russia as its biggest single market. Shares in the Danish brewer have fallen 8 per cent since the start of the month when it was announced that parliament was expected to pass the bill.
While the year-and-a-half delay until the law’s implementation will give brewers like Carlsberg and SAB Miller a grace period, it remains to be seen if consumers will be as happy to buy beers from shops as they were to buy them from kiosks, and how producers will make up the 10 per cent of beer sales that currently happen in the wee hours.
Kirill Bolmatov, director for the government relations of SABMiller Russia, told Reuters that he believed the ban would have a “short-lasting effect” before the market evolved to accommodate it.
“The volume sold through kiosks will be redistributed and sold in supermarkets, restaurants, bars and cafes.”
He added: “We understand how drinking beer in the streets irritates people, therefore we do not complain.”
The law marks a 12-year effort by the government to crack down on alcohol, with the strictest measures being enforced in Moscow. Since 1998, the sale of alcoholic beverages has been gradually banned at public spots, like markets and beaches, while last year, the government put a 10pm curfew on the sale of spirits.
The crackdown is not over yet with a planned bill to quadruple the fine for illegal alcohol sales.
But Muscovites can rest easy about one thing. While reports initially said that the 2013 law would pertain to Russians’ beloved kvas - a national soft drink made out of rye, yeast, beet sugar and stale bread, and containing 1.2 percent alcohol – government agencies have since assured consumers that the drink will enjoy exemption.
Good news for Coca Cola at least, which not long ago began producing its own kvas: Krushka & Bochka, which as its tagline notes, is enjoyed by tsars and peasants alike.
21 Jul. 2011