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.
SABMiller summarized the first six months of the current fiscal year. Miller Brands Ukraine has been demonstrating considerable production growth while the market collapses
During the first six months of the current fiscal year, SABMiller world production volume increased by 3% compared with the same period last year. At the same time, sales growth in the second quarter (July-September) has somehow slowed down, not reaching the figures of the same period of last year. In part this is due to colder weather in Europe and China this summer. World-wide sales volume for SABMiller non-alcoholic beverages has increased by 6%. Due to larger sales volumes and rising prices in some markets, during the reporting period SABMiller has increased profits by 6% and income per hectolitre has increased by 3%. Overall, financial and operational results achieved by SABMiller in the first fiscal semester meet the planned criteria.
Here are SABMiller sales dynamics in the regions: Latin America - 8%, Africa - 15%, Asia - 4%. In Europe, beer sales remain at last year's level due to continuing economic instability, which led to further lowering of the economic sentiment index and consumer expenses.
The biggest contribution to the overall sales volume in European markets was made by the British branch of SABMiller - Miller Brands UK, and also by the Ukrainian branch, Miller Brands Ukraine, demonstrating considerable production growth amidst the beer market collapse in the country.
According to production volume data (source: "Ukrpivo"), between January and September 2011 Miller Brands Ukraine production volumes grew from 8.15 mln decalitres to 13.23 mln decalitres of beer (by 62.4%)compared to the same period of last year. At the same time, the total production volume in the Ukrainian market for the same time period dropped by 1.6%.
According to Igor Tikhonov, general manager of Miller Brands Ukraine, "The results achieved during the new reporting period confirm the efficiency of our chosen marketing strategy. Its key principles are as follows: introduction of the most promising brands from SABMiller global portfolio to the local market and development of niche offers, fully satisfying the demand of Ukrainian consumers. It primarily concerns the premium segment and such brands as Miller Genuine Draft, Zolotaya Bochka and Velkopopovicky Kozel. At the same time, I am pleased to report our success in the mainstream segment: the recently launched licensed brand Amsterdam Mariner continues to demonstrate an excellent growth index."
*The fiscal year in Great Britain starts on April 1 and ends on March 31 of the following year.
2 Nov. 2011