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.
Bell’s Brewery Inc. expects new 200-barrel brewhouse to begin operation in January
Laura Bell, marketing director for Bell's, said the installation is part of a $17 million project to add the brewhouse, which will replace the 50-barrel brewhouse built in 2002, as well as add a fermentation cellar, update mechanical equipment, and build a new employee area and parking lot at the Comstock Township facility.
Bell said more large equipment is expected to arrive in the coming months with the brewhouse set to be up and running by January.
"This is a big day to start assembling some of the new brewhouse vessels," she said last week. "It was pretty exciting for us."
Bell said the old facility was at the "absolute maximum this brewhouse could do."
View full sizeJohn Mallett, Bell's Production Manager, and Laura Bell look at the development of the Comstock Township's plant expansion project.
"We're doing OK with filling orders now," she said. "But the demand for the beer is more than we can make right now."
Bell said the brewery has made 133,000 barrels so far this year — an 18 percent increase from this point last year — and she expects to make at total of about 180,000 barrels by the end of 2011. That is a projected increase of nearly 17 percent. Bell's produced just under 154,000 barrels in 2010.
The new brewhouse will allow Bell's to make more than 500,000 barrels annually, according to Bell's production manager John Mallett.
This is part of a $52 million investment over the next six years the beer maker announced during its 25th anniversary in the fall. The brewhouse will also help the company's production as it plans to roll out beer in cans at some point in the first half of 2012, Laura Bell said.
Laura Bell said the expansion means the brewery can begin to explore "new territory," although specific locations haven't been decided.
Laura Bell said the large tanks, weighing about 9,000 pounds each, were made by the German manufacturer Huppmann, which was acquired by GEA Brewery Systems in 2006. Huppmann's manufacturing facility in Hudson, Wis., made all the fermentation equipment, while more specialized parts portions of the project will come from the company's German facility.
The tanks were shipped across Lake Michigan on the S.S. Badger.
"The logistics of getting these tanks here is pretty interesting," Laura Bell said.
As for the remaining more than $30 million in investment, Laura Bell said more projects are to come, while some of the money will go toward hiring staff to run the new brewhouse.
21 Sep. 2011