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.
New Alcohol Restrictions Are Small Beer For Many Russians
The changes mean that it will no longer be legal to sell beer between 11 p.m. and 8 a.m. It will only be allowed to be sold in stores, rather than in the ubiquitous kiosks that clutter the streets in Russian towns and crowd railway stations and transportation hubs.
Advertising for alcohol will also be banned under the new legislation.
The changes are part of a plan outlined by Medvedev in August 2009 to combat the "alcoholization" of the Russian people. In January 2010, Moscow increased the tax on beer by 200 percent.
Russians drank an average of 12.5 liters of alcohol last year; of that 12.5 liters, vodka accounts for about five liters, while beer accounts for four.
According to a 2009 study published in the British medical journal "The Lancet," alcohol abuse accounts for 600,000 deaths in Russia each year and a total of half of all deaths among males between 15 and 54.
Changes Greeted With Skepticism
Beer has been steadily growing in popularity since the collapse of the Soviet Union. The new law has been enough to bruise the share price of Danish brewer Carlsberg, which owns Baltika, Russia's largest beer producer, and gets about 45 percent of its profits from Russia.
But many are skeptical that the new regulations will bring significant change, at least in the short term. Vadim Drobiz is the director of the Moscow-based Center for the Study of the Federal and Regional Alcohol Markets. He is sanguine about the changes.
"[The consumer] won't lose anything at all," he says. "He won't reduce his level of consumption. He will buy his beer in advance. Night-time crime is falling and will continue to fall to some extent."
He notes that consumption of hard liquor did not drop appreciably when a ban on nighttime sales was introduced at the end of last year.
Drobiz says it would make more sense to regulate the sales of pharmaceutical alcohol more tightly, since many drugstores are open around the clock and about 90 percent of pharmaceutical alcohol sold is used for consumer consumption.
A man drinks canned beer on the Moskva River beach in Moscow.
Darya Gorshkalyova, a 24-year-old actress sunning herself recently in a Moscow square, shared Drobiz's skepticism.
“I don’t think this will solve the problem in Russia," she says. "It seems to me people will carry on drinking just as they used to. If they make this ban, then people will just buy their beer earlier - they’ll buy it in the afternoon and drink as normal. And that’s it. It’s the same with cigarettes in Europe. They’re really expensive but people still smoke.”
'More Pressing Issues' Than Beer
Drobiz emphasizes that the main change the new regulations will bring immediately is a reduction in crime.
"Society and the state will definitely get more order, more public order, particularly at night," he says. "There will be fewer young people wandering around looking for alcohol."
Nonetheless, considering Russia's love of drinking, this war on alcohol is a bold move on the part of Medvedev and the ruling United Russia party, given the legislative elections scheduled for the end of this year and the presidential poll coming in the spring of 2012.
Sergei Zaitsev, a 40-year-old Muscovite, says there are more pressing issues that need addressing such as his biggest worry -- his unemployment.
“I [want] well-paid work so that I can be sure of myself, so that I can provide for my family and provide for my wife, feed my children," he told RFE/RL while sitting on the grass at Pushkin Square, quaffing a beer in the sunshine.
"If [Medvedev] does that -- then let him make demands like this. First he has to give something, then he can demand. And what’s he given me? Nothing.”
25 Jul. 2011