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.
Heineken to leverage global scale by consolidating media buying for its brands
Heineken already works with both agencies in the majority of its regions. Both have the capability to provide a global service and have the scale to give Heineken the improved performance the company is looking for in all its brands. The chosen agency, in first instance, will focus on Heineken’s top fifteen markets (1), which represent 85% of the company’s media spend.
Alexis Nasard, Chief Commercial Officer at Heineken said: “Heineken is the world’s most international brewer. We have the opportunity to leverage the benefits of our global scale to achieve efficiencies and quality improvements in our media buying.” He added: “The ultimate goal is to improve our media performance through better strategy, planning and execution, while maintaining the absolute requirement for stand-out brand communication in all channels we choose to focus and operate in.’’
The move to globalize media buying is in line with a number of other initiatives across several aspects of the company’s business designed to leverage its global scale, including the appointment of a global advertising agency for the Heineken brand and the creation of the Global Business Services organization.
1 Dec. 2011