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.
US. Georgetown brewery to more than double its production
16 Mile Brewing Company, which opened in the summer of 2009 and features four year-round, English-style ales, will use its increased production to strengthen its Delaware customer base.
After hiring Sales and Marketing Director Claus Hagelman away from Dogfish Head earlier this summer and switching from 22-ounce aluminum bottles to the standard 12-ounce glass size, 16 Mile has gone on the offense in establishing its brand in the local markets.
"A lot of good things are happening here at the brewery," said co-owner Chad Campbell. "We're really excited to supply more. It's all about the next level. We're turning the page on things."
In addition to 16 Mile's "core four" ales -- Amber Sun, Blues' Golden, Old Court and Inlet India Pale Ale -- Campbell said the popular fall seasonal, Harvest Ale, will become a year-round mainstay and some new seasonal beers, and perhaps a stout, will hit the market next year.
Despite the exploding craft beer industry, 16 Mile is purely focused on becoming established as a Delaware beer. A big step in establishing the brand was introducing the 12-ounce bottle. Though it means losing some individuality, Campbell said, it's worth it.
"The 12-ounce package is an enabler, in a word," he said. "The marketplace, statistically, is a six-pack world, whether it's in a pub or in a package store. The 22-ounce aluminum bottle was unique, it set us apart, it helped us make our brand. The six-pack format will just catapult our efforts, and it will definitely take us to the next level."
A large part of the next level will be a larger retail base. After all, it's difficult to sell beer when liquor stores and restaurants aren't buying it. That's where Hagelman comes in.
"You need the two worlds to marry each other," he said. "If someone goes to a bar and finds a beer they love, they want to go to the liquor store and buy it. If they don't see it at the store, it takes the wind out of their sails."
Some stores, like Banks Wines & Spirits in Millville, have been carrying 16 Mile for years and are looking forward to carrying more, especially seasonal beers, which are always popular.
"I'm glad to see a small business like them be able to expand in Delaware," said co-owner Ted Banks. "I'm glad to see them going in the right direction. If they get into their seasonals, they'll get more customers. It'll be very good for our customers and for us."
The expansion will happen in phases, Campbell said, with the tap room and cooler space done by the end of the year and the expanded brewing space to be phased in through April in time for the busy season.
25 Oct. 2011