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.
SABMiller announces US$295 million investment programme in Peru
Backus is one of the most significant contributors to the Peruvian economy, collecting approximately US$760 million in direct and indirect in taxes in 2010, and employing 7,000 people directly and 22,000 indirectly across the country. The geographical spread of the investment across a number of regions will ensure that many local communities will benefit from job creation and investment in the value chain.
Luis Eduardo Garcia Rosell, interim Backus President, comments: "Peru has seen strong growth in recent years and economic forecasts remain positive, with average annual GDP growth of 3.3% predicted until 20201. We believe that continued investment in our operational capacity, in addition to the attractiveness of our brand portfolio and the beer category as a whole, will allow Backus to continue to capitalise on this impressive upward growth trajectory.
"However, it isn't just the company's shareholders that will benefit from our capital investment programme. For every person it directly employs, Backus already supports three Peruvian jobs in the value chain. This further investment demonstrates our continued commitment to local communities, supporting jobs and businesses across the country and promoting economic growth and wealth creation for the benefit of all."
Peru remains an attractive market with strong underlying economic indicators. In addition to positive GDP growth forecasts for the next ten years, the population is predicted to grow by 53% between 2000 and 21002. Beer consumption in Peru is currently more than 11m hectolitres per annum, and could rise to as much as 16m hectolitres by 20203. Per capita consumption stood at 38.2 litres per annum in 2010, which is significantly below consumption rates in Brazil (65.4 litres), Venezuela (77.8 litres) and the USA (79.8 litres).
SABMiller has invested approximately US$570 million in Backus in the past five years, supporting its continued growth and development. Today, the company is the second largest contributor to the Latin American division of SABMiller, which provides approximately a third of the group's EBITA. Backus' strong performance has continued in the first half of the current year, with beer volumes in the six months to 30 September 2011 up 11% on the prior period.
17 Nov. 2011