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.
N?rnbergMesse: Construction of hall 3A starts: time for the excavators
- Digging in: official cutting of the first sod for new hall at N?rnbergMesse with dual partners Lord Mayor Dr. Ulrich Maly and Finance Minister Dr. Markus S?der
- In favour: Free State of Bavaria, City of N?rnberg, N?rnbergMesse and Spielwarenmesse collaborate
- Expanding: Co-Managing Directors Dr. Roland Fleck and Peter Ottmann: “Display space now tops 170,000 m? with investment of 37 million euros!”
3,290 tons of steel, 2,750 m? of glass, 18 months construction time
Building cranes dominate the skyline of N?rnbergMesse yet again. Four of them reach into the sky between halls 3 and 4A. Another quick change of scenery is assured by the short construction time of 18 months, in which the hall is to be erected on an area distinctly larger than a FIFA World Cup football pitch. 3,290 tons of steel (weighing about half as much as the Eifel Tower!) and 2,750 square metres of glass (equivalent to 346,000 glass water bottles) – plus various other materials – are to be incorporated in the building by then.
Before Dr. Ulrich Maly, Chairman of the Supervisory Board and Lord Mayor, buried the bucket of his excavator in the sand, he found the right words for this further expansion of N?rnberg’s exhibition infrastructure: “The success of the N?rnberg exhibition and congress venue radiates over the whole region. The events provide some 20,000 direct and indirect jobs in the city and region and an annual revenue of more than a billion euros, factors that strengthen the economic power in the long term.”
The Deputy Chairman of the Supervisory Board, Dr. Markus S?der, Finance Minister, commented on the construction of hall 3A: “With more than 170,000 square metres of space after the expansion, the exhibition site is almost as large as the Stuttgart and Hamburg sites together!” This investment will make the N?rnberg exhibition and congress venue more important in international competition. “The Free State of Bavaria is like an ellipse with two power centres and two globally operating exhibition companies,” says S?der. “The Bavarian state government as partner of N?rnbergMesse fully supports the expansion of the exhibition site with this hall. This benefits the whole N?rnberg Metropolitan Region!”
In his speech marking the official start of construction, N?rnbergMesse Managing Director Dr. Roland Fleck announced that a million euros more than originally decided is being invested in the new hall: “In the course of the planning process undertaken under great pressure of time, we have recognized and taken advantage of an engineering opportunity to extend the area of the hall by 900 to around 9,000 square metres at very low extra cost. With the approval of the supervisory board, N?rnbergMesse will therefore now invest 37 million euros in the new building instead of 36 million euros!”
Anyone standing on the building site at the south-east corner of the exhibition and congress site would find the construction of the hall as extremely logical: “Hall 3A functions as a hinge between the east connection and a future south line on the one hand and will be the future advertisement for N?rnbergMesse for all those arriving there for events in the ‘exhibition – arena – stadium’ triangle on the other. Three halls can then be used along the Gro?e Stra?e – and a Convention Centre. All the buildings are specimens but the whole is still more than the sum of its parts,” says Dr. Roland Fleck, Managing Director of N?rnbergMesse.
The new hall itself also sets new architectural trends. It was already clear from the impression of the building created by the three-dimensional visualization set up on the building site during the ceremony that the design by Zaha Hadid Architects would be an eyecatcher, a design milestone.
The International Toy Fair has been the accelerating force behind the expansion of the N?rnberg exhibition location right from the beginning. This time it is also the growth of the world’s leading toy fair that provides the motivation for building another hall on the N?rnberg exhibition site: “The International Toy Fair was and is the catalyst for the growth of capacity at the N?rnberg exhibition venue,” says N?rnbergMesse Managing Director Dr. Roland Fleck: “Or in view of the Norisring motor racing circuit in our direct vicinity, let’s call it the ‘turbocharger’ for N?rnberg’s exhibition engine. The outstanding and fair cooperation with Spielwarenmesse eG is certainly currently shown by the construction of this hall, but also by the recent extension of the general agreement between Spielwarenmesse eG and N?rnbergMesse GmbH until 2021.”
“International Toy Fair belongs to N?rnberg”
A statement that Ernst Kick, Chief Executive Officer of Spielwarenmesse eG, confirms: “We are delighted to be here for cutting the first sod for the future of the exhibition site and the exhibition city, because our contractual and financial commitment to the construction of hall 3A emphasizes that the International Toy Fair belongs here in N?rnberg.”
The fact that N?rnbergMesse and Spielwarenmesse eG agree on the necessity for the new hall also benefits other organizers and exhibitions. A new hall for the growth of other exhibitions, such as the combination of HOLZ-HANDWERK and fensterbau/frontale, and later SPS IPC Drives too, but also for additional events for which otherwise space or a date would possibly not have been found. “We are now in the fortunate situation that we have our work cut out accommodating our events during the year but are still able to answer organizers’ inquiries positively,” says Managing Director Peter Ottmann. So the new hall is an expression of the great growth of the N?rnberg exhibition venue? “Yes, not the only International Toy Fair needs the extra space,” Ottmann adds, “the new hall is a blessing for other events too. Not because every exhibition is already so large, but because it enables us to basically increase the utilization of the site by organizing several events at the same time.”
The client for the new hall is N?rnbergMesse, Spielwarenmesse eG provided a loan for it. Ernst Kick, Chief Executive Officer of Spielwarenmesse eG, is particularly pleased that the hall is larger than originally planned. It is namely ten metres longer and now reaches 105 metres (with a width of 85 metres). N?rnbergMesse Managing Director Dr.Fleck is pleased that the extra 900 square metres only cost a million euros more: “I call that an attractive square metre price. This hall 3A is a real investment in the future!”
Joint excavation for the new hall 3A at N?rnbergMesse instead of cutting the first sod by hand: Peter Ottmann, Managing Director of N?rnbergMesse, Jan H?bener of Zaha Hadid Architects, State Minister Dr. Markus S?der, Deputy Chairman of the Supervisory Board of N?rnbergMesse, Lord Mayor Dr. Ulrich Maly, Chairman of the Supervisory Board of N?rnbergMesse, Dr. Roland Fleck, Managing Director of N?rnbergMesse, and Ernst Kick, Chief Executive Officer of Spielwarenmesse eG.
About the N?rnbergMesse Group
N?rnbergMesse is one of the 20 largest exhibition companies in the world and among the Top Ten in Europe. The portfolio covers some 120 national and international exhibitions and congresses and approx. 40 sponsored pavilions at the N?rnberg location and worldwide. Every year, around 30,000 exhibitors (international share: 37 %) and up to 1.4 million visitors (international share of trade visitors: 21 %) participate in the own, partner and guest events of the N?rnbergMesse Group, which is present with subsidiaries in China, North America, Brazil and Italy.The group also has a network of 46 representatives operating in 97 countries.
13 Aug. 2012