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.
China. Barley cost crimps Tsingtao Brewery profit growth
* Price of barley has risen more than a third this year
Tsingtao Brewery , China's second-largest brewer by volume, posted slower profit growth in the first half of 2011 as soaring barley prices hit margins.
Tsingtao, of which Japan's Asahi Breweries Ltd holds some 19 percent, said net profit rose 22 percent to 989.9 million yuan ($155 million) in the six months ended June, from 813 million a year ago. Net profit rose 30 percent in the first half of 2010.
The market had expected Tsingtao to post net profit of 994.2 million yuan for the first half, according to an average forecast of six analysts.
The price of barley, a basic ingredient for brewing beer, has risen by more than a third this year.
In the first quarter, Tsingtao raised the price of some products by about 5 percent, driving up sales and earnings as distributors stocked up ahead of the increase.
Rising per-capita income has driven up beer consumption in the world's most populous country.
Tsingtao Brewery's Hong Kong-listed shares have gained 20 percent this year, against a 15 percent drop in the Hang Seng Index .
Tsingtao competes in China with CR Snow, a joint venture between China Resources Enterprise Ltd and SAB Miller Plc . China Resources Enterprises' shares have gained 2 percent this year.
It also competes with Heineken NV , Carlsberg AS (CARLb.CO) and Kingway Brewery Holdings Ltd in the world's biggest beer market.
Prior to the first-half earnings, of 22 analysts tracked by Thomson Reuters, eight rated Tsingtao as a "buy" or "strong buy", seven had a "hold" recommendation, four rated it as an "underperform" and three called the company a "sell".
One of China's oldest beer makers, Tsingtao was founded in 1903 by German and British merchants under the name Nordic Brewery Co Ltd Tsingtao Branch.
($1 = 6.389 Chinese Yuan)
13 Aug. 2011