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.
Smaller, lower quality barley crop in west Europe
* Maltsters may have to accept lower quality supplies
Barley harvests in western Europe are winding down with an overall slight fall in the size of the crop and quality also expected to decline, particularly in Germany, crop analysts said on Thursday.
Winter barley in Germany, which is mainly used for animal feed, suffered major damage from the triple blow of a very cold winter, springtime drought and summer rain, according to the farm ministry.
The ministry estimates the winter barley crop has fallen 21.6 percent to 6.76 million tonnes.
Livestock farmers have been switching from using relatively scarce barley to feed wheat.
"Wheat is expected to increasingly replace barley, which is in short supply, in feeding troughs in the EU," German grain trading house Toepfer International said in a report.
Germany is, however, expected to harvest a larger spring barley crop after farmers replanted weather-damaged rapeseed with spring grains.
The farm ministry estimates the spring barley crop, partly used for beer brewing, was up 18.1 percent at 2.01 million tonnes.
Frequent harvest-time rain in Germany, however, threatens to hurt the quality of spring barley.
"The (spring barley) crop nationally is up but the quality is very mixed," one German trader said. "It looks like malt producers and beer brewers may have to accept lower quality than usual in their supplies in the coming months.
FALL IN FRANCE
In France, the barley harvest shed 11 percent from last year and 19 percent compared to the 2006-2010 average, at 9 million tonnes, the farm ministry estimated this week.
The sharp fall was mainly linked to a 10 percent drop in barley yields after a severe drought that hit France until early June.
In terms of quality, some of the spring barley was downgraded to animal feed because of too high protein levels. Spring barley amounts to around one third of the total barley crop in France.
Britain's winter barley harvest in complete while 30 percent of the spring barley remains in the fields, mostly in Scotland where progress has been hampered by rain, crop consultants ADAS said in a report on Thursday.
Production should follow in a similar pattern to Germany with a smaller winter barley crop offset by a rise in spring barley output.
Spring barley plantings in Britain rose 10 percent this year, reflecting strong malting premiums in the run-up to last year's harvest, while winter barley area slipped 8 percent, according to a planting survey issued by the Home-Grown Cereals Authority.
Winter barley yields are seen falling to 6.1 to 6.2 tonnes per hectare, down from a five-year average of 6.5 tonnes while ADAS estimated spring barley yields on par with the average of 5.3 tonnes.
Spain is the only major producer in western Europe to harvest a significantly larger barley crop this year.
The barley has been in for more than a month and rose by 4.5 percent from last year's disappointing crop to some 8.5 million tonnes after an unusually wet spring, according to preliminary official estimates.
Dealers say about 1 million tonnes is of malting quality while the rest goes to animal feed. Spain can be self-sufficient in barley, but only with bumper crops like the 11.3 million tonnes harvested in 2008.
9 Sep. 2011