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 sales slightly increased, driven by lagers and speciality beers
"After the past several years affected by adverse economic conditions, the market is slowly stabilizing. Premium brands and speciality beers did particularly well last year. Further development of the market may be impacted by the insecure economic situation in Europe and subdued consumer confidence," says Doug Brodman, CEO of Plze?sk? Prazdroj.
The market is starting to stabilize with lager and speciality beer sales on the increase
Overall beer sales have stabilized at 2010 levels. Lager sales went up by 4% last year and benefited from volume growth of our Premium beer brands, particularly Pilsner Urquell. This brand outperformed the beer market and also the premium category last year. Also the Frisco brand showed strong performance with the introduction of our new Cranberry variant. Despite continuing pressure in the on-premise channel, the share of beer consumed in pubs and restaurants is around 45%, which is unique in the world and only proves how exceptional Czech beer culture is.
Record year in exports
Despite the fragile global economy, last year's exports rose mainly in countries with already high sales of Plzensky Prazdroj beers, such as Slovakia, Canada and Hungary.
Plze?sk? Prazdroj is the leading exporter of Czech beer. By 1870 the brewery already exported its beer to more than 30 countries around the world, including overseas, and has long been building a reputation for Czech beer around the world. Thanks to its reputation, but also good cooperation with exporters and an appropriate mix of marketing and trade-marketing tools, demand for Plze?sk? Prazdroj's beer brands abroad has reached 890 thousand hl, which is a new historical record.
14 Feb. 2012