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.
Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Resilient European brewing sector hit by recession but fighting back
According to the Ernst & Young and Regioplan study, beer consumption fell 8% from 2008 to 2010, cutting 260,000 jobs, of which 85% in the hospitality sector, in the sector’s value chain. Government revenues from the sector, including excise duties collection, fell a staggering 6% in one year, from 54 billion in 2008 to 50.6 billion Euros in 2009, in spite of tax increases on beer across a number of countries.
Although the overall contribution of beer to the EU economy has decreased by 10% since 2008, the contribution of the brewing sector to the economy remains very significant. According to the Brewers of Europe production and consumption of beers provides more than 2 million jobs across Europe whilst total annual sales equal around 106 billion Euros. Despite tough times, the number of breweries multiplied to over 3,600 last year, from just over 3,000 in 2008. Non-alcoholic beer sales have also increased in some countries.
“The study underlines the fact that the brewing sector has resilience, remains a global leader and has a very positive impact on the European economy,” said Alberto Da Ponte, President of The Brewers of Europe, which represents the 3,600 breweries across Europe.
In addition to the recent global downturn, the decrease in the economic contribution was driven by an increasing tax burden, higher raw material prices, new restrictions and a growing shift in consumption from the hospitality sector towards retail and home consumption, where the government revenues, value-added and employment generated by one litre of beer are significantly lower. Beer sales fell by 15% in the hospitality sector, compared to 4% in retail outlets.
As the economic crisis hit in 2008, China passed the EU as the biggest beer producer in the world, the study shows. Despite the crisis, the sector has adapted well, although relentless increases in beer excise duties will stifle any recovery and it needs supportive government policy in terms of regulation and taxation, to now help drive the growth of the wider EU economy and help prevent further job losses.
Da Ponte said, “The report shows how with the right policy from governments and policymakers, the brewing sector can play a leading role in the economic recovery that is important to us all.”
The report presents consolidated data on the 27 EU Member States. Detailed information is also provided on the EU 27 countries plus Croatia, Norway, Switzerland and Turkey.
23 Sep. 2011