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.
Tanzania Breweries could pay $22m in beer war
TBL, which commands a 70 per cent share of the market and is a subsidiary of the world’s second biggest brewer SABMiller, is accused of anti-competitive branding agreements with outlet owners and removing SBL’s posters and signage in the market. The two brewers have taken their competition wars to the Fair Competition Tribunal of Tanzania (FCT). (See: EABL set to sell off its 10pc stake in Tanzania brewer)
In September 2009, SBL lodged a complaint at the Fair Competition Commission (FCC) against TBL for allegedly restricting competition in the beer industry.
Following the hearing, the Commission penalised TBL and ordered it to pay a fine of five per cent, refrain from removing SBL poster materials at the outlets and directed that all branding agreements between TBL and outlet owners be declared null and void.
FCT has already started proceedings against the company for anti-competitive behaviour, and the penalty could be worth up to five per cent of TBL’s turnover for the year of its latest audited accounts.
Going by the results for the year ending March 2011, when TBL’s turnover stood at $455 million, the firm could pay up to $22.7 million in damages.
TBL has subsequently filed an appeal at the FCT on two grounds; that it has not been given a reasonable opportunity to be heard and that FCC failed to conduct its investigation fairly.
Battles between manufacturers and distributors of consumer goods has been on the rise in East Africa’s second biggest economy, reflecting the fierce competition for customers.
On December 13, 2010, upon an application made by TBL, the tribunal granted the appellant leave to add FCC as a respondent in Appeal No. 4 of 2010 and accordingly an amended memorandum of appeal was duly lodged in the tribunal on December 17, 2010.
Upon hearing the matter, chairperson of the tribunal Justice Razzia Sheikh, noted that FCC had objected to Appeal No. 4 on the grounds that the amended memorandum of appeal was bad in law for non-compliance with the provisions of the Fair Competition Act No. 8 of 2003, the fair Competition Commission Procedure Rules, 2010 and the FCT Rules, 2006.
29 Aug. 2011