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.
Krones reports rising sales and profit in H1 2011
During the first half of 2011, sales rose by 16.8% in comparison to the preceding year’s figure to reach 1,257.5 million euros. In the year’s second quarter, the company’s growth accelerated: at 650.8 million euros, sales from April to June 2011 were 19.9% up on the preceding year’s equivalent period. Order bookings rose by 19.8% in the year’s first half to reach 1,323.4 million euros.
Krones’ profitability showed a substantial improvement in the year’ first half. Earnings before taxes (EBT) rose from 32.0 million euros in the preceding year to 69.2 million euros. The EBT margin, meaning pretax earnings in relation to sales, was thus 5.5% (preceding year: 3.0 %). After taxes, Krones earned 49.2 million euros (preceding year: 22.1 million euros) in the first half of the ongoing business year. This corresponds to earnings per share of 1.62 euros (preceding year: 0.73 euros).
Krones still performing to plan
The global economy is on course for growth. Nonetheless, a feeling of uncertainty remains. The global debt problem, above all, is a major hazard for the business cycle. From today’s perspective, however, Krones is confident that the situational conditions will remain favourable overall during the second half of 2011.
Krones anticipates that in comparison to 2010 sales will grow by significantly more than 10%, and appreciably exceed the previous record high of around 2,381 million euros from 2008. For order bookings, too, the company expects a new record high, laying solid foundations for further growth. In addition, the Executive Board is very confident that Krones will significantly improve its earnings, and achieve a pretax return on sales of more than 5% (preceding year: 3.3%). From today’s perspective, Krones anticipates that the pretax earnings achieved in January to June will be exceeded in the year’s second half.
28 Jul. 2011