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.
US. Upland Brewery announces $3 million expansion
Upland will be moving its brewing operations to a new, 47,000 square foot building located on West Grimes Lane.
The move will allow Upland to increase its brewing capacity from 11,000 to 25,000 barrels per year.
The current 11th Street facility will still house Upland’s restaurant and bar, the Tap Room.
However, Upland will switch its brewing operations there to a smaller pilot program to focus on the development of new specialty beers.
The new facility will be located immediately adjacent to the B-Line Trail and a former rail switchyard that Mayor Mark Kruzan said he wants to turn into “our community’s Central Park.”
The move comes during a time of growth for the brewery.
Upland’s president, Doug Dayhoff, said their sales have tripled in the past five years.
“This rate of growth has been possible because we have reinvested all profits back into the business, maintained modest salaries — thanks to a staff that is more passionate about quality beer than big paychecks — and squeezed capacity out of our original facilities and equipment in a ‘scrappy’ fashion,” Dayhoff said in a statement.
Dayhoff said Indiana is still far behind Wisconsin and Michigan in craft beer sales and hopes the growth in local breweries in Indiana continues to climb.
Caleb Staton, Upland’s head brewer, also thought the move was necessary because of Upland’s growth.
“We have experienced steady growth over the past five years, and the writing was on the wall when the last tank we installed stuck out of the roof by 4 feet,” Staton said.
He said he expected that growth to continue at the new facility, and the new facility will enable a tripling of Upland’s current size over the next decade.
Big Red Liquors was the first wholesale business to start selling Upland, and Upland beers have grown in sales ever since they started.
“We are excited that they are making a further significant investment in the Bloomington facilities, which will benefit the community for many years to come,” Wade Shanower, president of Big Red Liquors, said in a statement.
Upland also said it was prepared to increase its $3 million investment to beautify the building and the surrounding area. The brewery is seeking the city’s financial assistance to do so, and most city funds used would go to improving the aesthetics of the building.
Mayor Kruzan said he is excited about Upland’s plans and how they could accelerate the city’s vision for a new park in the area.
“It’s never easy for the trailblazer, but their success will be the community’s success and so I am thrilled to be working with this homegrown local business to see how the city can help in its growth,” Kruzan said.
28 Jul. 2011