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.
Molson Coors 2Q profit falls on higher costs
Still, company officials said that Molson Coors is performing quite well despite the larger macroeconomic picture, which including economic woes in U.S. The company said it has been able to gain market share in the U.S. and overseas.
"The external world is what it is," said Molson Coors CEO Peter Swinburne. "But there are a lot of things we are going on internally that we are doing to reach consumers."
Beer makers have been struggling for some time with weak sales volume as consumers grapple with the impact of the tough economy. That problem has been compounded by escalating fuel, packaging and ingredient costs, which are affecting nearly all consumer product makers.
Molson Coors has been particularly hard hit by the U.S. economic downturn as its core customer -- men under the age of 28 -- are seeing particularly high unemployment. The situation worsened during the quarter as unemployment and gas prices ticked up.
To weather the downturn, Molson Coors, which said costs for the quarter were higher than it anticipated six months ago, continued to keep a tight lid on its spending. The company had been using that cost-cutting strategy in the past few quarters to remain profitable.
And like many other companies, Molson Coors has looked to increase its presence overseas as a way to bolster its business at a time when U.S. consumers' spending remains conservative. While the company said it increased its market share in the U.S. slightly, it had bigger gains in places such as U.K. during the period.
The company also increased its push into emerging markets. In India, it purchased a controlling stake in a joint venture during the period. In China, it introduced Coors Light during the quarter.
However, Molson Coors' heavy investment in its overseas business also hurt its bottom line during the period.
Molson Coors reported that it earned $222.8 million, or $1.18 per share, for the period ended June 25. That's down from $237.2 million, or $1.27 per share, a year ago. Revenue rose 6 percent to $933.6 million.
Analysts had expected the company to earn $1.29 per share on revenue of $958.5 million, according to data from FactSet.
Shares of the company fell 30 cents to $44.33.
Molson Coors also said Tuesday that it will buy back up to $1.2 billion shares. The new repurchase program, approved by Molson Coors' board, is expected to span three years.
3 Aug. 2011