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.
A breakthrough decision of the Milan Court of Appeal is opening the door for the Budweiser Budvar brand back on the Italian market
The plaintiff required confiscating and destroying all such labelled goods as well as damages amounting to € 21 million and the reimbursement of the proceeding costs. In 2008, the Court of First Instance adjudged the plaintiff damages of nearly € 6 million plus attribution. The Court of Appeal has now ruled that the unfair competition did not take place therefore no entitlement to damages occurred and furthermore, it cancelled the trademark “Budweiser“ No. 589.805 owned by ABI in Italy due to its misleading. In addition to that, the plaintiffs have to reimburse all the proceedings costs of the Italian importers.
?esk? Bud?jovice, 23rd June 2011 – The Italian Court of Appeal in Milan supported the Italian importers of the Budweiser Budvar brand - Italsug Trade S.R.L. (hereinafter referred to as Italsug) and K. Kiem S.R.L. (hereinafter referred to as Kiem) in its ruling. The dispute originated in 2001 by the legal action brought by Anheuser-Busch Inbev (hereinafter referred to as ABI) and its Italian representative Birro Peroni Industriale S.P.A. (hereinafter referred to as Peroni) against Budweiser Budvar for alleged unfair competition and breach of rights to their trademarks of “Budweiser“, “Bud“ and similar by importing beer of the “Budweiser Budvar” brand to Italy and selling it there. Originally, the plaintiff required confiscating and destroying all such labelled goods as well as damages plus fine amounting to € 21 million and the reimbursement of the proceedings costs. The Court of Appeal has now ruled that the unfair competition did not take place therefore no entitlement to damages occurred and furthermore, it cancelled the trademark “Budweiser“ No. 589.805 owned by ABI in Italy due to its misleading. In addition to that, the plaintiff has to reimburse all the proceedings costs of the Italian importers. In 2008, the Court of First Instance adjudged the plaintiffs damages amounting to € 5,952,271.58 plus attribution.
The Court of Appeal has now practically dismissed all the requirements of ABI and Peroni. “As this now legitimate ruling indicates, the court arrived at a conclusion that neither unfair competition nor breach of rights regarding the ABI’s trademark took place on the part of the Italian importers of Budweiser Budvar N.C. and therefore no entitlement to damages occurred. Furthermore, the court complied with the proposal of Italsug and Kiem companies, cancelling the trademark No. 589.805 ‘Budweiser’ owned by ABI in Italy due to its misleading,“ says Budweiser Budvar’s legal department manager Helena Lejtnarov?. In addition to that, the plaintiffs have to reimburse all the proceeding costs of the Italian importers in both degrees of the proceedings in the amount of nearly € 150,000. This dispute in particular is a part of the Budweiser Budvar trademark ‘war’ which has been taking place in Italy since 1985. Following lengthy legal disputes, ABI accomplished invalidation of some Budweiser Budvar’s trademarks with the “Budweiser” element in Italy in 2001. Subsequently, ABI started to use its “Budweiser” trademark in Italy, trying to ban using other still valid “Budweiser Budvar” trademarks by the importers of Budweiser Budvar N.C. and attempting to threaten them with the claim for damages in a usurious amount.
“Budweiser Budvar N.C. was not a direct party in the dispute; however, it closely participated in preparing the argumentation and its supporting with evidence using archived documents. Despite the fact that it was the importers who were brought action against, the lawsuit was basically aimed at Budweiser Budvar N.C. and its “Budweiser Budvar“ trademark. The ruling will undoubtedly strengthen our business position in Italy,“ adds Budweiser Budvar’s PR manager Petr Samec. Italy belongs amongst Budweiser Budvar’s ten most important export territories. Last year the sales increased by 34% there. Italy has been a traditional trade outlet for the brewery; its pale lager was exported to Venice at the end of the 19th century. Budweiser Budvar had used the “Budweiser Budvar“ trademark in Italy until 2001, when the court’s interim measure issued in connection with this dispute prevented that.
This breakthrough ruling of the Milan Court of Appeal is going to also affect other proceeding lawsuits concerning the possibility of using the “Budweiser Budvar“ trademark by Budweiser Budvar N.C. in Italy. It cannot therefore be ruled out that Budweiser Budvar will be able to return to the Italian market with the trademark used here from the end of the 19th century. Without a shadow of doubt, Budweiser Budvar N.C. is going to use all the possibilities to be able to continue this tradition, unduly interrupted by ABI.
29 Jul. 2011