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.
Plze?sk? Prazdroj records highest export in its history
Despite adverse conditions in various parts of the world, the exports of the Pilsner Urquell brand marked historic record of 685 thousand hl. Export growth was underpinned by good performance in countries with traditionally higher sales such as Slovakia, Canada or Hungary, where the sales volume went up by more than higher single digit percent compared to prior year. Exports to Australia were up by close to 40% on prior year. Also exports to Israel, Vietnam or Korea saw an increase of tens of percent.
"We are happy to see the growing interest in Pilsner Urquell, which only proves that its unique flavor is gaining an increasing number of fans in the world. We are glad that the Pilsner lager is more in demand not only in Europe, but also in the Far East and Australia," said Doug Brodman, CEO of Plze?sk? Prazdroj.
The export of the Pilsner Urquell lager, which is exported to more than 50 countries, is also supported by the growing reputation of the international Pilsner Urquell Master Bartender competition. In six years of its existence, about 16 thousands contestants from 23 countries participated in this competition. Pilsner beer is also successfully promoted by a chain of nine Pilsner Urquell Original Restaurants abroad. You can now find Pilsner beer on tap even in Hanoi, Vietnam, where the first PUOR in Asia was opened in August last year.
Also other brands of Plze?sk? Prazdroj did well abroad in 2011. In South Korea, we saw an increase not only in the sales of Pilsner Urquell, but also Gambrinus. The Gambrinus brand was first introduced to the Azerbaijan market, Velkopopovick? Kozel to Cyprus, and the Master craft beer to Norway, the Ukraine and the neighboring Slovakia.
The growing sales in Asian countries like Vietnam, South Korea or Taiwan are also benefiting number of visitors from those countries in the Pilsner brewery. For several years in a row, tourists from Taiwan have been the third largest nationality that comes to visit the brewery, following the Czechs and Germans. The interest in the brand transcends the Czech borders.
Notes for editors:
With total sales of almost 9.9 million hectolitres in 2010 (including licensed production abroad) and exports to more than 50 countries around the world, Plze?sk? Prazdroj is a major beer producer in the region and the largest exporter of Czech beer.
Plze?sk? Prazdroj, a.s. is a member of the SABMiller plc. Pilsner Urquell is the international flagship of the SABMiller brand portfolio.
SABMiller plc is one of the world's largest brewers, with brewing interests or distribution agreements in over 60 countries across six continents. The SABMiller brand portfolio consists of international brands such as Pilsner Urquell, Miller Genuine Draft, Grolsch, Peroni Nastro Azzurro, as well as many other successful regional brands.
1 Feb. 2012