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.
Cider Seen as Next ‘Craft’ Brew as Sales Climb 25% This Year
Cider is still a tiny fraction of the alcohol category and is not about to threaten beer, wine or spirits for booze dominance. But while mainstream beer brands are declining, cider is growing at a furious pace, drawing premium prices, coveted women drinkers and even more male fans attracted to bold flavors. Category sales were up 25% in the year ending Oct. 30, to $49.6 million, according to SymphonyIRI, which tracks grocery sales excluding those at Walmart and liquor stores.
But curiously, it's a trend the big boys seem to be missing, at least for the moment. Brewing giants MillerCoors and Anheuser-Busch InBev do not have cider brands in the U.S., although both seem to be keeping a watchful eye on the category. AB InBev, for instance, launched a cider brand in the U.K. earlier this year called Stella Artois Cidre (pronounced "see-dra") that would seem to be a logical brand extension for Stella in the U.S. SABMiller, which owns 58% of U.S.-based MillerCoors, sells only one cider, a brand called Sarita, in South Africa. Cider is "a category we're watching with interest," said a MillerCoors spokesman.
For now, the biggest stateside cider player is a privately held company operating out of tiny Middlebury, Vt., called Vermont Hard Cider Co. The marketer said it controls an estimated 60% of the cider market with several brands, including category leader Woodchuck, which has a 47% share and whose sales grew 37%, to $23.5 million in the 52 weeks ending Oct. 30, according to SymphonyIRI. The company also has the No. 4 brand, Wyder's, and imports two brands owned by Heineken International: Strongbow (No. 3) and Woodpecker (No. 15).
Just like craft beer, hard-cider brands rely on grass-roots marketing that draws consumers seeking new taste experiences, natural ingredients and authentic brand stories. And while cider used to skew to women, more men are drinking it. Vermont Hard Cider says its customer base is now 50% male, with the average drinker between the ages of 21 and 30.
"People used to feel it was just a sweet product. Now it's a lot more complex," said Vermont Hard Cider President-CEO Bret Williams. "We're doing new things and pushing the envelope, and that's bringing in the men." Woodchuck's latest offering, Farmhouse Select Series, is made from Vermont apples and premium Belgian beer yeast. And just like craft beer, it is plugged as a perfect food pairing with cheeses and pork dishes.
The biggest U.S. brewer in the category is craft-beer pioneer Boston Beer Co., maker of Sam Adams, which sells a cider brand called Hardcore, whose sales jumped 21% in the year ending Oct. 30, and a new offering named Angry Orchard. Meantime, European cider giant C&C Group is upping its U.S. game, and recently bought the No. 2-ranked Hornsby's brand from E. & J. Gallo Winery. C&C plans to use Hornsby's strong West Coast distribution to grow its Irish import Magners, whose base is on the East Coast, said spokesman Robert Ballantyne.
Hard cider's U.S. heritage goes as far back as John Adams, who was said to down a tankard every morning to prevent gas. But in the modern era, cider has never broken through in the mass market. While growing fast, it still accounts for only 0.2% of the combined beer and cider market in the U.S., compared with 17% in the U.K. and 12% in Ireland, Nomura Equity Research stated in a recent report.
So why would global brewers even consider moving into such a small category? For one, cider has good margins. It is priced at an average of $35 a case, more than other premium offerings, such as $33 for craft beer and $29 for imported beer, according to Nomura. Also, cider attracts women drinkers. "Whereas 80% of beer companies' consumers are male, cider is gender-neutral, opening up a market in which beer players have struggled," Nomura said.
29 Nov. 2011