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.
Coke looks set to follow up on beer market
Chief executive Terry Davis said yesterday that he still saw a significant role for the company in brewing, despite an agreement that requires the group to stay out of the market for two years.
Mr Davis said he expected CCA would take up its right to buy Foster's mixed drinks, spirits and soft drinks businesses under a deal struck with SABMiller in June.
The deal is conditional on SABMiller winning regulatory and shareholder approval for its $10.8 billion takeover of Melbourne-based Foster's.
CCA is expected to pocket more than $300 million for selling its half-stake in Pacific Beverages to SABMiller.
Under the deal, the group would have to hand over the NSW brewery that produces and distributes in Australia the Bluetongue, Peroni and Miller brands.
Mr Davis confirmed CCA would pay about $200 million for Foster's non-beer brands, including the Cougar and Black Douglas labels and Cascade soft drinks.
The only beer asset CCA would keep is Foster's brewing operations in Fiji.
Mr Davis signalled New Zealand could be a launch market for what would ultimately be a fresh assault on the Australian beer market when the two-year period was up.
"I'm passionate (about manufacturing in) Australia rather than have it made somewhere else, so that would be my aim - to start off in distribution but ultimately to be a manufacturer."
Foreign beers that Foster's presently manufactures in Australia include Carlsberg, Corona - owned by Mexican beer giant Modelo - and Stella Artois, owned by the world's biggest brewer, Anheuser-Busch.
Both foreign giants are rivals of SABMiller but Foster's is confident it can keep the Corona contract even under the ownership of the Anglo-South African giant.
Mr Davis said CCA would be well positioned to compete in the beer market in two years.
"That's a long time to wait, but what we do know is the international brewers will be looking for alternative forms of distribution and we think we offer that," he said.
"If you're an international brewer, you have to ask yourself: why would you want your competitor to sell your brands in another country?"
25 Oct. 2011