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.
“Viking Malt” September Barley Report
Barley harvesting is finished and about 20-25 % of malting will be downgraded to feed quality because of high proteins and rain damages.
Average results of samples received:
Screenings above 2.5 mm 89.9%
Lithuania will not be self sufficient with crop11- the shortage is expected to be about 20000 MT.
Estimated 80-90 % of the total barley is harvested. In the south of Finland (malting barley areas) the figure is even higher.
Average yield for the barley is estimated to be 3400 kilos per ha.
Estimated quantity of malting barley will be 300-310 000 tons. Due to low screenings and high protein levels acceptance percentage for the malting barley will be around 60 %.
Finland will be self sufficient with malting barley and there is also a surplus volume to be exported if the quality is acceptable.
Harvest in general is proceeding very slowly. Harvest normally starts at first in the south and then moves north. This year harvest of malting barley started at the same time in the whole country and harvest is still going on in both parts of the country. Most regions in the grain producing part of Sweden had 150-200% of normal rainfall during august. The South and West of Sweden have had difficult weather conditions since early august while the Eastern and Northern part of the grain producing area had quite good weather conditions during first half august. Barley still standing on the fields have been downgraded to feed. As a consequence there is some concerns about the malting barley quality because of pre-germination has occurred in some fields or more correct in some parts of some fields where it have been problems with lodging or straw breaking. The main actions from the Coops to secure the quality are that they separate deliveries with content of pre-germinated or coloured kernels from barley accepted as malting barley. Our own evaluation of qualities from different regions is proceeding on full speed. Although some volumes will not be accepted as malting barley there will be a surplus when the local demand has been covered. We estimate that the total malting barley harvest will reach 440 – 450 000 tons, the share for different regions on page 3. It is still too early to confirm the final volume of quality malting barley, analyses of pre-samples is ongoing and we will keep you informed on updated
12 Sep. 2011