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.
Canada. Viterra Malt reports lower sales on a year-to-date basis
Viterra’s malt operations generated sales of $74.0 million for the third quarter of fiscal 2011 compared to $70.3 million for the same period last year. On a year-to-date basis, sales were $199.8 million, compared to $235.6 million a year earlier. While sales in Canada were comparable year-over-year, in Australia malt sales volumes were down 8% in the quarter and 10% year to date reflecting sluggish customer demand and softening world malt prices.
Viterra expects Global malt markets to remain challenging in the near term due to sluggish beer sales in North America and Europe causing excess capacity and margin pressure around the globe. For Viterra’s malt operations in Australia, the Company believes that margins will remain compressed, below pre-recession levels, into the first half of fiscal 2012. However, the Company remains confident in the long-term outlook for this industry.
In Australia, Viterra operates seven processing plants with production capacity of 470,000 tonnes annually. Approximately 370,000 tonnes are destined for export markets predominantly in the Asian-Pacific region and 100,000 tonnes are consumed domestically. The Company is currently building an 110,000 tonne malt facility in Sydney, Australia, which is expected to be completed in fiscal 2012. Viterra’s North American operations participate in malt production through a 42% ownership interest in Prairie Malt Limited with a single-site malt operation located in Saskatchewan.
Viterra was founded in 1924 and has extensive operations across Canada and Australia, with facilities in the United States (“U.S.”) and New Zealand. Viterra has offices in Canada, the U.S., Australia, New Zealand, Japan, Singapore, China, Vietnam, Switzerland, Italy, Ukraine, Germany and India.
12 Sep. 2011