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. Utah beer co-op mourns loss of mini-kegs but carries on
The 5-liter, keg shaped Chubby, introduced to Utah in February, already has been pulled from most state-operated liquor stores, and no longer will be sold anywhere in Utah starting Oct. 1. Legislators took aim at the little fella by specifically outlawing any container of 5 liters or more.
Despite lawmakers’ efforts at reining in drinking habits because of fears of overconsumption, Utahns seem to like their beer.
Squatters and Wasatch Brewery, which produced the Chubby, is ramping up production to meet increased demand. The beer cooperative has added two, 200-barrel fermentation tanks to its production line. With a 6,200-gallon capacity, equivalent to 66,133 12-ounce bottles, these tanks will be dedicated to the production of the cooperative’s most popular beers: Squatters Hop Rising and The Devastator by Wasatch.
“We grew our sales about 20 percent last year, and we are ahead of that pace this year,” said Greg Schirf, Utah Brewers Cooperative managing partner. “These new tanks are the biggest fermentors we have ever purchased, and they will make a big difference in our production capacity.”
Last year, sales topped $7 million.
Still, the loss of the Chubby is “a heartbreaker,” said Schirf, who appeared before lawmakers earlier this year to make a case for the mini-keg. His arguments fell flat because the Chubby will soon join beer kegs, banned in 1990, as an illegal product — except for authorized beer retailers, such as taverns.
The Chubby holds the equivalent of 14, 12-ounce bottles, and unlike brown glass can be widely recycled. And although it is twice the size of a legal glass growler container, the Chubby holds less alcohol than a 24-pack sold at grocery stores.
17 Aug. 2011