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.
Tanzania: SBL to Launch Modern Brewery in Moshi
And when combined with its parent company, East Africa Breweries Limited (EABL) portfolio, the market share will account for approximately 28 per cent of the local beer sector. A statement released by SBL Corporate Relations Director, Teddy Mapunda in Dar es Salaam on Sunday said the company's new brewery in Moshi would increase its operating plants to three.
"With the launch of the Moshi brewery, the number of our operating plants has now gone to three. We have two other operating plants in Dar es Salaam and Mwanza," she said. She added that the Dar es Salaam and Mwanza plants have a production capacity of 350,000 and 650,000 hectolitres respectively.
"With the additional capacity of Moshi plant which can brew 500,000 hectolitres, the company will be able to produce a total of over 1.4 million hectoliters per annum," Mapunda said. She added that the company production will thus increase by 55 per cent with the launch of the new plant, adding that up to 200 people will be employed during the facility's full operation.
"The Moshi plant has now employed 85 staff bringing SBL's total staff 624 directly employed and about 700,000 indirectly engaged. She said that the Moshi plant's total production will be expanded further to 800,000 hectoliters per annum. Mapunda said the company has organized a media tour to the brewery that will give the media an insight of the plant's production capacity and technology.
She said the company will also organize an entrepreneurship seminar at Sheikh Amri Abeid Stadium that will highlight on the potential opportunities related to the launch of the Moshi brewery. SBL was incorporated in 1988 as Associated Breweries Limited and changed its name to Serengeti Breweries Limited in 2002 with its headquarters in Dar es Salaam.
The owners and management of SBL acquired the company in 2002 and commenced on a strategy of rapid expansion which has resulted in outstanding growth. EABL, a subsidiary of multinational brewing company, Diageo, acquired majority stake in SBL in 2009.
29 Nov. 2011