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.
As new report shows value of beer to the Irish economy, Irish Brewers Association calls for 10 per cent excise cut
The Association said that despite this decline in market share, the beer sector continues to contribute significantly to the Irish economy, through the 45,000 jobs that are maintained in the brewing, distribution and sale of beer, and the over €1 billion in revenue generated for the State from beer sales.
It is also crucial to Ireland’s local manufacturing and agricultural sectors, while contributing greatly to the purchase of utilities from local authorities.
The IBA said that this contribution was highlighted in a new pan-European report by Ernst and Young/Brewers of Europe, The Contribution made by Beer to the European Economy**, which, in the section on Ireland, shows that:
· Irish breweries produced 8.249 million hectolitres of beer in 2010, slightly less than in 2008 (8.846 million hectolitres), but a marginal recovery on 2009 (8.041 million hectolitres).
· Consumption was relatively stable following a period of decline. The annual consumption per capita was approximately 90 litres in 2010.
· Beer is Ireland’s favourite alcoholic beverage. Most beer is consumed in pubs and restaurants. Around 66% of total beer sales is sold in the on-trade.
· Direct employment in the Irish brewing sector is 1,441 jobs. Employment in supplying sectors arising from beer production and sales is estimated at 5,880 jobs. The induced employment in hospitality is around 35,700 jobs while a little over 1,500 jobs in the retail sector can be attributed to beer sales. Total employment in Ireland due to beer production and sales is thus 44,540 jobs.
· Ireland has one of the highest excise duty rates on beer in Europe. Government revenues are estimated to be 1.134 million euro comprising 320 million euro excise, 524 million euro VAT and 290 million euro in income-related contributions and taxes.
Stephen Lynam, Senior Executive of the IBA, commented, “As this report shows, beer is the most important product for the Irish pub. It accounts for approximately half of all alcohol sold in Ireland. This means that the sale of beer is vital to sustaining Ireland’s pubs and wider hospitality sector which continue to be central to the economy and overall employment levels.
“In the tough economic climate, it is important to boost this sector in line with the Government’s reduction in the lower rate of VAT earlier this year.
“To support this, the Irish Brewers Association is a calling for a 10% reduction in excise duty on beer that will help boost the sector and sustain jobs at a time when the market is declining. We look forward to engaging with the Government on this in advance of the December Budget.”
17 Oct. 2011