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.
German brewers worry about future
Germans drink less beer every year, so breweries founded in the 14th century are searching for ways to compete in the 21st. The answer, increasingly, is to look to an uncomfortable place for German brewers who pride themselves as being the best in the world: America, which in Germany has a reputation for making beers that taste like water.
But in the United States, the market for unusual and inventive beer is growing. As German leaders try to stave off global economic crisis, they’re trapped between conservative impulses and a situation that appears to require radical solutions. German brewers, too, are struggling between pride in their long, steady history and the need to invigorate their bottom line.
Whether the average Wolfgang will go along with the efforts is another question. The mostly Bavarian revelers who were at Oktoberfest this week swore fealty to traditions that have connoisseurs from other countries looking elsewhere for inventiveness.
“One of the advantages of Bavarian beer is that it’s so old. It’s clean and natural,” said Florian Hiering, 20, who was sipping Spaten — founded in 1397 — from a mug that held a liter of beer. He had an ear piercing and was wearing soft brown lederhosen, with matching suspenders.
“Bavaria is very conservative, and Germany is too,” he said. “America is more open to experimentation.”
Those who attended the final days of Oktoberfest this week weaved through a pastiche of Bavarian culture both exaggerated and sincere: oompah brass bands, gigantic robotic tableaus of hunters who were roasting oxen on spits, and hundreds of smelly fish crackling on grills.
The celebration of unchanging traditions is big business for the brewers, but being stuck in time cuts both ways. Germans drank 122 liters of beer per person in 2002; in 2010 it was down to 107. Overall beer production sank from 10.8 billion liters in 2002 to 9.6 billion last year, according to the German Brewers’ Federation.
“We have to educate the consumer,” said Christian Dahncke, the head brewer of Hacker-Pschorr, another major firm, as he drank his own beer at the festival in his company’s tent, which can hold 8,200 people. “People grow up with the brewery. The father drinks Hacker-Pschorr so the son drinks Hacker-Pschorr.”
German beer generally sticks to a framework set down in a 1517 brewing law that is the oldest of its kind in the world: water, barley, hops, and little more. Within the boundaries, there’s room for variation. But there’s little of the experimentation that takes place elsewhere.
“In America, what we’ve seen over the last 10 years is a growing subculture of brewing,” Dahncke said. “In Germany we need more marketing pressure.”
He said that his company was opening a small-scale brewery this year to test new kinds of beers internally.
The conservative approach to beer is part of a broader caution toward radical reinvention in Germany — also on display in its approach to the debt crisis in Greece, economists say.
7 Oct. 2011