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.
European Union – Malting barley unlinks from other grain markets
While from crop 2011 Denmark still seems to have the EU’s largest spring malting barley surplus, the availability of malting barley from other sources is getting more scarce. For that reason, UK malting barley has developed a premium of over 20 Euro/mt over the Danish origin. Interestingly, the specifications for both should be the same. The physical demand for Ready-to-process malting barley made buyers pay such premiums, as from Denmark one would have to check the maltability of every single lot shipped. A second reason is the better phytosanitary condition of UK barley compared to Denmark and Sweden.
Due to the fact, that more malting barley will have to be downgraded to feed barley in Scandinavia, the expectations of ending stocks have lately been corrected to the downside. Markets now expect an early demand for malting barley from crop 2012 for replenishing the run-down malting barley stocks at the maltings. Earliest malting barley available is usually of french origin, which is why the currently paid premium for french origin seems to be establishing in crop 2012 as well.
29 Nov. 2011