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.
Ireland. New study shows 17% decline in alcohol consumption over last decade
The study further shows that the first big decline in average consumption was in 2003 after which it remained consistent until 2007. A further large decline occurred in 2008 and 2009 partly due to the impact of cross border shopping.
While the decline was arrested in 2010 and 2011 as a result of the repatriation of trade previously lost to Northern Ireland, the current figure of 12 litres per adult is significantly below the 14.4 litres per adult peak of 2001 when Irish per adult consumption was the highest among OECD countries.
The report’s author, Anthony Foley, commented, “Average alcohol consumption declined from its peak in 2001 of 14.4 litres per adult to 13.5 litres per adult in 2003. It broadly stayed at this level until 2007 and in 2008 it declined to 12.5 litres per adult. There was a further decline in 2009, followed by an increase in 2010 and no change in 2011.
“The movements in 2009 and 2010 were influenced by the changing level of cross border purchases of alcohol. Part of the recorded decline in 2009 and part of the recorded increase in 2010 are due to this influence.
“In addition, the census of population has been revised upwards for 2011, with further similar revisions due for the years 2007-2011. This will lower the average adult consumption for each of those years, with the revised 2011 figure expected to be 11.8 litres per adult.
“In international terms average consumption increased in several OECD countries but declined in Ireland. In 2001, the Irish consumption level was the highest of the sample of countries in the OECD. In 2005 it was also the highest. However, by 2011 Ireland’s decline combined with increases elsewhere means that we are now approaching the levels of mid-ranked countries.
The Director of the Alcohol Beverage Federation of Ireland, Kathryn D’Arcy, commented, “Contrary to popular opinion average consumption of alcohol in Ireland has declined dramatically in recent years. From a health policy perspective, it is of interest to discover what effect, if any, the decline in average consumption over the past decade has had on the incidence of harmful consumption behaviour and on the consequences of alcohol misuse.
“It is important that policymakers take these findings into account when formulating national alcohol policy, especially in regard to the upcoming National Substance Misuse Strategy Group report.”
Alcohol Beverage Federation of Ireland
7 Feb. 2012