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.
Carlsberg cuts 2011 outlook on weak Russia
The world's fourth-largest brewer said it now saw full-year adjusted net profit growth of 5-10 percent, against previous guidance for more than 20 percent growth.
It also cut its outlook for 2011 beer volume growth in Russia, which accounts for about 40 percent of Carlsberg's total beer sales.
"Second-quarter performance in Russia has been below expectations," said Chief Executive Jorgen Rasmussen in the statement.
"The recovery in the beer category is taking longer than we anticipated as the Russian consumer adapts to the exceptional price increases of around 30 percent undertaken during the last 18 months," Rasmussen said.
"This impacts negatively our Russian 2011 profits and is the driver behind our revised 2011 outlook," Rasmussen said.
Carlsberg said it sees Russian beer volume growth at a low single-digit percentage figure from a previous forecast of between 2 and 4 percent this year. The Russian market declined by about 2 percent in the second quarter, it said.
Unfavorable weather during the second quarter also hit beer consumption, the brewer said.
"I would not have thought that Carlsberg would have to downgrade its outlook due to this," Nymann said, adding he had expected it would have been easier to get price increases through in Eastern Europe.
"I'm confident that our Russian business will return to growth," Rasmussen said. "At the same time, I'm pleased with the performance of the rest of the Group."
EUROPE, ASIA GROWTH
Beer markets in Northern and Western Europe grew slightly for the first six months. In Asia most beer markets reflected growth of mid- to high single-digit percentages.
For the Copenhagen-based brewer of Tuborg, Baltika and Carlsberg beers, northern and western Europe account for about 40 percent of total beer sales and Asia about 20 percent.
"It looks good for the business in northern and western Europe, and in Asia which is seeing strong growth in China," Imsgard said.
Second-quarter operating profit fell to 3.70 billion Danish crowns ($715 million) from 4.24 billion in the same quarter last year, missing analysts' average estimate of 4.34 billion forecast in a Reuters poll.
Sales rose 4.3 percent to 18.74 billion, in line with a 18.73 billion average forecast.
18 Aug. 2011