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.
drinktec: Don’t Leave Footsteps!
Recent decades have seen all branches of beverage technology achieve major advances in reducing consumption of resources. In the brewing industry, for instance, primary energy consumption levels in the mash-house – the industry’s heaviest user – were cut by well over half. A similar reduction was achieved in a brewery’s water consumption, now down from what were often two-digit figures to about five liters or less per liter of beer produced. But there will be no resting on laurels: nearly all the brewing groups with global reach have long since been issuing environmental policy statements that go much further. Consumption of fresh water has a target reduction
to three liters per liter of beer by 2015 if possible, or failing that by 2020 at latest. More ambitious still are the major international manufacturers of soft drinks with their declared target of the “closed loop”, meaning a water-in to beer-out ratio of 1:1.
50% Sun, 50% Biogas
With their obvious cross-sector application, the themes of resource management and renewable energies have bearing on virtually all product areas represented at drinktec 2013, and in fact recur like a leitmotif through all twelve exhibition halls. The use of solar energy to produce heat for industrial processes is one way forward, first demonstrated at drinktec as long ago as 2005. Practical experience gained during the intervening years has shown that in German latitudes the sun can provide around 50 percent of the thermal energy required by a brewery. For the other 50 percent of the heat, and for electrical power, exhibitors at drinktec 2013 utilize a second proven technology – combined heat and power (CHP), or co-generation, fuelled by biogas from anaerobic waste water digestion. This heat reservoir can also be used, with the help of adsorption refrigeration systems, to supply a brewery’s refrigeration requirements. Although “cold from heat” may sound quite innovative, it is in fact established technology. A bonus feature is that the biogas produced can be burnt off to provide “back-up” heat in the boiler-house.
Wind and Water
Depending on location, renewable energy forms such as wind and water can be fed into the power mix at any time. In rural areas, an attractive solution for SMEs can be the use of solar power in the form of woodchips. Also of interest, though not yet quite ready for the market, are wind turbines used to produce compressed air – easily stored for conversion into electrical power on a demand basis by means of a generator. Breweries and other beverage production plants can also be envisaged as well suited to the direct – and hence maximally efficient – physical use of the stored compressed air. “One thing that drinktec 2013 will be reflecting comprehensively is this trend towards using renewable energies,” Exhibition Director Petra Westphal declares, “ – and not just in individual sectors, but as it affects everyone: the major international players, the middle-ranking
breweries, local bottled mineral water suppliers and family dairy businesses.”
Devising New Ways to Close the Circle
It’s vital to re-think processes and technologies again and again and so find new ways to close a circle – this algorithm holds good through all the production divisions of renewables-based beverage manufacture. To take an example: biogas consists of about 60 percent methane and 40 percent CO2. Separating off this CO2 by means of a new membrane technique produces biomethane; and biomethane, with its high and standardized calorific value, can be fed into the natural gas distribution grid. Businesses not in a position to use the biogas-derived thermal energy directly are enabled in this way to convert it into additional profit instead. The captured CO2, moreover, is a recyclable substance in its own right. In one vision of the future, renewable energy will be used to produce hydrogen and combine it with CO2 to synthesize an analogue to natural gas. This end product can then be stored in gas tanks pending return into the system or disposal on the market.
“Green” CO2 from Fermentation Processes
There is a problem with CO2 in that across the world’s major growth regions, in particular, beverage manufacturers often have no direct access to it in usable form. This means costs are high and CO2 footprints are very significant, because of the distances over which the gas has to be transported and the consequent expense. One alternative used hitherto takes the form of so-called production facilities burning mineral oil or natural gas at deliberately low efficiency in order to retrieve CO2 from the flue gas. But that cannot be called a genuine solution. A true source of high-purity “green” CO2 is to be found rather in fermentation processes such as beer-brewing. Modeling to date has indicated that brewery and soft drinks groups will in future make a practice of setting up production premises on a combined site, enabling them to harvest, process and use the “green” CO2 to best advantage. One of the strengths of drinktec is its ability to demonstrate this “holistic” knowledge transfer in its entirety during a single trade fair: in Petra Westphal’s words, “the fair is a net that encompasses all the relevant activities and brings them closely together.”
But for a production method to be sustainable it takes more than the grand vision alone. The process itself still has to be optimized in every detail, any chain being notoriously only as strong as its weakest link. Thus reliable in-line measurement, for example, is no less crucial as a link in the optimized production chain than are the right valves, heat exchangers or sterilization strategies. These “operational” segments too will receive comprehensive coverage at drinktec 2013, with all the relevant information available at first hand – as indeed one expects, given that the exhibition is every bit as many-faceted as the challenges facing the beverage and liquid-food world itself.
Further information: www.drinktec.com
drinktec photos to download
drinktec is the world’s leading trade fair for beverage and liquid food technology. It is the most important trade fair for the sector. Manufacturers and suppliers from all over the world – global companies and SMEs alike – meet up here with all sizes of producers and retailers of beverages and liquid food products. Within the sector drinktec is regarded as the number one platform for launching new products on the world market. At this event manufacturers present the latest technology for production, filling and packaging of beverages of all kinds, and for liquid food – also encompassing raw materials and logistics solutions. The themes of beverages marketing and packaging design round off the portfolio.
drinktec 2013, which takes place at the Messe M?nchen exhibition centre in Munich, from September 16 to 20, 2013, is expected to attract around 1,500 exhibitors from over 70 countries and approximately 60,000 visitors from more than 170 countries.
22 Feb. 2012