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.
Marketer Interview: Ramson, SABMiller “Digital Marketing is Key, but with Precise Strategies”
Portada: In which Latin American countries do you have a presence?
Randy Ransom: “SABmiller has presence in 25 countries of the region. We own seven brewing companies in Peru, Ecuador, Panama, San Salvador, Honduras and Argentina; and in 18 countries SABmiller brands are operated by licensed distributors. Also, the company bottles soft drinks for The Coca-Cola Company in El Salvador and Honduras, and for Pepsico International in Panama.”
Portada: How do you structure your marketing unit over the region?
Randy Ransom: “We keep all marketing at a local level. Each country has a marketing director and each office works with an ad agency. We do not cross markets between them. Actually, our beers are globally 97% local brands.”
Portada: What is the share of Latin American revenues?
Randy Ransom: “Latin America brings 22% of the total revenues. It is the same share for South Africa, while Europe and North America bring 19 and 18% respectively.”
Portada: What are your expectations for the following years?
Randy Ransom: “For the last 2, 3 years the region has been growing above the average, I see the same growth rate for the next 3 years. The beer industry is a very hands-on business where growth takes time and effort, so while growth will continue. It will take smart and calculated planning and execution”.
Portada: Do you plan to expand your operations to other markets?
Randy Ransom: “We want to buy distributors in Mexico and Brazil, but only at the right price. We bought a small brewery Issenbeck in Argentina at a low of only 3% of market share and we will try to rebuild it to the 10% that it used to be”
Portada: Which is the importance of the digital marketing?
Randy Ramson: “I think digital marketing is key, but moving with very precise strategies. We work with Facebook on a brand level. Ideas matter and executing that idea is essential”.
Portada: What are your challenges for next year?
Randy Ransom: “The challenge is the market evolution. As the middle class grows household income, it tends to move to acquire other higher cost social drinks.”
19 Oct. 2011