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.
Barley brewing offers basis for portfolio variation and sustainability
Launched almost a year ago, Brewers Compass is DSM’s most recent enzyme-based blend for barley brewing, when that ingredient is used in a range from 30 to 100 per cent (in terms of grist levels).
Since barley is typically half the price of malt, Van Roon (pictured) said it enabled significant cost savings, typically generated 60kg CO2 less per tonne of barley used and could also be used as a cost-effective platform for portfolio diversification.
On its launch, DSM cited increased off-trade beer consumption that – due to economic and regulatory events – was stimulating demand for quality beers (and products such as Brewers Compass) in the value and private label segments.
So did Van Roon think demand for such products was being fuelled by brewers cutting-down on malt-based beers or diversifying within a product portfolio?
He said “I don’t think it’s per se cutting down. I truly believe that malt will remain a mainstream brewing raw material. However, Brewer’s Compass provides our customers with choice and flexibility, for segmenting their portfolio, going into the area of local premium blends, or making exciting new propositions when blending.
“For instance, with nutraceuticals or fruit juices…or to reduce costs for existing products by partially replacing barley with malt,” Van Roon added.
Whether malt would continue to gain grown at the expense of malt remained to be seen, said Van Roon. “For sure there are interesting opportunities ahead. The final choice will rest with our customers, and their decision to segment their portfolio.
"However, coming back to the sustainability advantages of using barley (also the value it brings in terms of cost savings)… there are very interesting opportunities ahead for brewing with barley.”
Van Roon also spoke about the key current trends DSM had identified within global brewing.
29 Nov. 2011