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.
Kirin Holdings Full-year Profit Declines
For the full year, the company's net income declined to 7.41 billion yen from 11.39 billion yen in the prior year. On a per share basis, net income was 7.14 yen, significantly lower than 11.93 yen per share a year earlier.
Operating income was 142.86 million yen, down from 151.61 million yen in the previous year.
Sales for the current year declined to 2.07 trillion yen from 2.18 trillion yen a year earlier.
In the domestic alcohol beverages business, sales were down 6.5 percent and operating income dropped 3.6 percent from last year. In the domestic non-alcohol beverages business sales declined 9.5 percent.
Meanwhile, in overseas beverages business, sales grew 12.4 percent. Pharmaceutical and biochemicals business revenues dropped 17.9 percent from the previous year.
The company noted that in the domestic alcohol beverages business, despite the effects of a decline in consumer sentiment and constraints in manufacturing and supply systems following the Japan earthquake, it was putting effort to strengthen its core brands to regain sales.
Looking ahead to the first half of 2012, the company expects net income of 13 billion yen or 13.52 yen per share on sales of 1.06 trillion yen.
For the full year 2012, Kirin expects net income of 48 billion yen or 49.91 yen per share on sales of 2.23 trillion yen.
The company also declared a year-end dividend of 13.5 yen per share and projected an unchanged dividend of 27 yen per share for the full year, 2012.
20 Feb. 2012