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.
MillerCoors’ Focus Turns to Struggling Miller Lite
Charged with that task is MillerCoors CEO Tom Long, who took the helm six months ago. According to the Wall Street Journal, Miller Lite represents about a quarter of the company's total volume of 50.3 million barrels as of Sept. 30. Its market-share losses have accelerated in recent months and the brand has less than half the market share of Anheuser's Bud Light, the country's top-selling beer. Fast-growing Coors Light became an in-house rival after SABMiller plc and Molson Coors Brewing Co. formed the MillerCoors joint venture in 2008.
Even with Miller Lite's troubles, profit at MillerCoors has climbed each year as the combined company cut costs and raised prices on many of its beers in response to higher commodity expenses. Long told the WSJ that the three-year-old joint venture will book a record profit in 2011.
He explained that Coors has benefited the most from the combined distribution of the new company. "There were much bigger distribution gaps in Coors. Miller Lite is a little bit victimized by our significant success in Coors Light, but that's no excuse. We've got a job to do on Miller Lite," he said.
Part of that job includes going to its distributors this coming March with new advertising and packaging. In addition, the company is debuting a new Miller Lite taste-flow can in late spring, according to the report.
MillerCoors is also working on separating Coors and Miller Lite in retailer's coolers, Long said, explaining that retailers and the company sell more when there are separated. "Sameness kills value in all marketing. What [we] want to do is create separateness and give those brands bigger, clearer identities," he said.
Beer, in general, has been losing ground to other alcohol beverages such as wine and hard liquor. Part of the problem is that the Millennials drink different products for different occasions. "You've also got some changes in drinking patterns, for instance the decline in carbonated soft drinks. Still, drinks are more important and that's why we see a rise in the consumption of ales in the U.S., because ales are less carbonated," Long said.
MillerCoors also needs to contend with the rise of the craft beer segment. According to Long, the company currently has the single-biggest craft beer (Blue Moon) and the fourth largest (Leinenkugel's). In addition, the company's craft business division, Tenth and Black, plans to grow about 60 percent over the next three years.
"If we can play really hard in the fastest sector right now, which is craft, which we are doing, and we can do well with Miller Lite, Coors Light and Miller 64, then our company will do quite well," said Long.
20 Dec. 2011