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.
Austalia. Supermarket giants tapping into beer market
The retail behemoths have been advised they have the potential to significantly increase sales of private labels despite falling beer consumption.
Liquor industry analysts predict the retailers - believed to reap at least $100 million a year in sales of own-brand beer - can increase their market share from 2.5 to 4 per cent.
Supermarket-owned wine labels now account for almost 20 per cent of wine sales in Australia. The supermarket giants have antagonised food and beverage companies by aggressively rolling out new home-brand labels in recent years.
Woolworths, which last year stated its wish to double private label sales across all products, has clearly been most aggressive in the beer market and this month added a new label, Sail & Anchor, to its range.
The group's liquor buying manager, Steve Donahue, told BusinessDaily Woolworths' beer sales were growing. Market research indicates industry-wide sales fell more than 5 per cent in the year to November.
Woolworths has also moved into the booming cider market using the Sail & Anchor brand.
Citi analysts believe the growth of "big box" liquor stores - Woolworth's Dan Murphy's and BWS and Coles' First Choice - will provide vital shelf space for their lower-price private label beers. They estimate private labels, sold at full price, provide a gross margin of 10-20 per cent compared with less than 5 per cent for mainstream branded beers from Foster's and Lion.
Citi's Craig Woolford said the big retailers would always promote the big brewers' brands while quietly slotting their own labels in for subtle competition.
"Foster's makes very high profit margins so the beer category has been a target for retailers, though building brand equity in beer takes time compared to wine, as consumer repertoire of wine choices is far wider," Mr Woolford said.
The retailers' private labels are divided between so-called "control brands" and their own labels. Control brands, such as the Sol Mexican brand sold in Woolworths outlets, are made by other manufacturers but licensed exclusively to one retailer.
Woolworths has also bought 25 per cent of Perth's Gage Road brewery.
Hammer 'N' Tongs was produced for Coles by Boag's, but that contract was cancelled by the Tasmanian brewer's owner Lion and the beer is now made offshore in Vietnam.
Mr Donahue said: "We won't be spending millions in advertising like the big brands do, and we are growing, but from a small base."
1 Feb. 2012