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.
Mexico’s Modelo profit up 33 pct on weak peso
* Revenue up 1.4 percent to 23.551 bln pesos
* Costs seen rising in Q4
Oct 21 (Reuters) - Mexican brewer Grupo Modelo benefited from the weak peso in the third quarter, posting an almost 33 percent jump in profit even as revenue rose only slightly.
Modelo, which exports popular brands such as Corona, got a boost as the peso saw its steepest slump in September since the 2008 financial crisis. As the peso fell, the value of the company's sales in the United States, its biggest export market, rose.
The brewer reported on Friday that third-quarter profit climbed to 3.310 billion pesos ($238 million) from 2.496 billion pesos a year earlier.
Modelo -- half-owned by the world's biggest brewer, Anheuser-Busch InBev -- said revenue rose 1.4 percent to 23.551 billion pesos.
The brewer could take a hit in the fourth quarter from higher grain costs, Chief Financial Office Emilio Fullaondo warned analysts on a conference call.
A cold snap in September and heavy rains in Mexico's southwest damaged as much as 70 percent of the country's second barley crop of the year, and this mean Modelo will have to import barley at higher prices, Fullaondo said.
Export sales dropped 4.1 percent in the third quarter, hurt by lower sales in the United States. Sales in Latin America and Europe increased.
Modelo is introducing new brands, such as Victoria and Pacifico, and expanding its draft offering in the United States.
"We are committed to developing the new brands that we're launching into the U.S., but that takes time," said Fullaondo. "It's still a very complicated environment in the U.S."
Exports accounted for 32.7 percent of total sales in the quarter, compared with 34.5 percent a year earlier, Modelo said.
Domestic sales were up 9.6 percent.
Modelo shares were up 2.2 percent at 80.64 pesos in local trading on Thursday.
21 Oct. 2011