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.
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