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.
‘King’ can maker Rexam has high hopes for Russian 75cl move
Cans developed with client Baltika Breweries will be made at Rexam’s plant in Naro-Fominsk, Russia, and are designed for the beer market, although they are also suited to other drink varieties.
Craig Jones, General Director for Rexam Russia, said: “The 75cl can is the next logical step for beverage cans in Russia. We first introduced the 33cl can in Russia in 1998 and since then a majority of beers have moved to 50cl packaging, following a demand for a larger size beer packaging.”
Jones said that packaging group Rexam launched its first 1l ‘King’ can in 2007, but beer producers were now seeing demand for something a can between 50cl and 1l.
The 1l cans are also made at Naro-Fominsk, and Rexam said that existing lines there would be adapted slightly to produce the 75cl offering, made using the same manufacturing techniques.
We asked Rexam whether it thought such a large product had potential in Western Europe, and whether there was demand or interest in such sizes here?
Western European potential
Mark Bunker, sector communications manager at Rexam Beverage Can Europe and Asia told BeverageDaily.com: “Although the 75cl can has been created for the Russian market, to accommodate a demand for a size can between standard and the King can, we believe the 75cl can certainly has potential in Western Europe.
“The successful launch of our 1l can in Germany and Norway in 2011 is proof that there is a demand for all types of cans across the European market. “
1l cans first hit the Russian market in 2011, and Bunker said their popularity proved that consumers liked the option of a larger size, encouraging Rexam’s clients to release it in Germany and Norway.
New can sizes were popular right across Europe, Bunker added, with brand owners looking to differentiate packaging in a bid to drive sales in a competitive market.
As well as making a real impact at point of sale, 75cl and 1 litre cans also provided considerable surface space to display branding messages and provide an eye-catching design, he said.
Suitability beyond beer
Pressed as to whether he thought unwonted media or regulatory attention might deter drinks firms here from adopting such products, Bunker said:
“Rexam partners with its customers and suppliers to bring innovation to the market. In doing so, Rexam explores attitudes and behaviours across a wide variety of geographies and consumer groups whilst of course respecting and working within local, national and international regulations.”
The 75cl can was also suited to a wide range of other carbonated and non-carbonated beverages, Bunker said, which is available with all of Rexam’s value-added finishes.
Bunker said: “[It] can be used as a regular addition to a product range, or can be used as a limited edition or promotional can to make a real impact at point of sale.”
19 Jan. 2012