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. Drinks Industry says National Alcohol Report is a missed opportunity to address misuse
· Lack of evidence to support key recommendations in the report
· Sponsorship ban will present major challenge for sporting and cultural organisations
The Alcohol Beverage Federation of Ireland (ABFI)* has said that, while agreeing with and welcoming the majority of the recommendations contained in today’s National Substance Misuse Strategy Group publication, the report as a whole is a missed opportunity to address the very serious issue of alcohol misuse.
ABFI said that given that alcohol consumption has fallen 17% in the last decade and that this downward trend is likely to continue, an opportunity existed to introduce targeted measures aimed at those who misuse alcohol products as well as addressing binge and underage drinking.
Instead, however, today’s report includes a number of unnecessary and unworkable proposals that if implemented will hit the average consumer who enjoys alcohol responsibly, will impact on the 62,000 jobs and €2 billion in tax revenue that the drinks industry supports across the economy, and will do little or nothing to address alcohol misuse.
Key recommendations such as a ban on drinks industry sponsorship of sporting and cultural events would be extremely challenging for national and local sporting organisations. It will leave them starved of revenue for both major international fixtures and for grassroots teams and clubs, while there would also be a serious decline in major cultural events, festivals, and concerts. The reality is that there are already strict co-regulatory codes applying to how alcohol brands can market, promote and support these events.
ABFI added that the report was legally misguided in its pursuit of minimum pricing, and that the re-introduction of the ban on below cost selling would be a far more effective means of addressing the sale of cheap alcohol. ABFI also said the view of the industry had been effectively supressed by not including a minority report submitted by the Federation, alongside today’s final report.
The Director of ABFI, Kathryn D’Arcy, commented, “Ireland already has one of the highest alcohol excise and taxation regimes in Europe and our industry operates within the most regulated environment for alcohol marketing anywhere in the world. Given that we are drinking far less than we did 10 years ago we do not need further restrictions, bans and legislation in order to address misuse.
“It is the culture of binge and underage drinking that needs to be addressed, not the entirely legitimate activities of a major industry, whose products are among Ireland’s leading brands and which supports jobs, businesses and livelihoods the length and breadth of the country.
“ABFI played a full role in the National Substance Misuse Steering Group and continually called for evidence based measures to support the Group’s recommendations. While there is much to be welcomed in the report, regrettably in some key areas the failure to provide all available evidence to support the calls for restrictions, levies and bans means that we oppose a number of key recommendations.
“The fact that a decision was taken to disregard our objections as expressed in our minority report by not including it in today’s publication undermines the final report as a true reflection of what was expressed at the Group.
“Many of the key measures in this report, if taken on board, will simply penalise the average consumer who enjoys alcohol sensibly and responsibly. We will continue to bring this view to Government to ensure they take this on board when forming national alcohol policy.”
14 Feb. 2012