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.
US: Anheuser-Busch InBev “working proactively” with DoJ over Modelo deal
A company spokesperson told just-drinks yesterday (14 November) that the firm believes the transaction “should be approved” and still expects it to close in the first three months of 2013. "We are working proactively with regulators to move through the review process efficiently," the spokesperson said.
It comes after US not-for-profit advocacy group the American Antitrust Institute (AAI) argued ths week that the authorities should stop the deal to prevent “the march towards a US beer monopoly”.
“If the proposed transactions amount to a de facto merger between A- B InBev’s and Modelo’s product portfolios in the US, it is likely to create serious anti-competitive effects,” the AAI said.
It added: “In local markets with large Latino populations, current concentration levels and the post-merger increases may be even higher than they are nationally. The potential anti-competitive effects include reduced product variety and higher prices for consumers.”
Meanwhile, analyst Trevor Stirling of Bernstein Research said it is a “material possibility” that Modelo will have to off-load its Piedras Negras brewery, with 10m hectolitres capacity, to satisfy the Department of Justice.
“However, we do not view this as a deal-breaker as we think the crown jewel remains the Mexican domestic beer business for A-B InBev,” added Stirling.
It also emerged yesterday that the UK's Office of Fair Trading has approved the deal. Details of the decision have yet to be published, but are expected next week. An OFT spokesperson told just-drinks the full text would be made available after “both parties have a had a chance to redact confidential information” from the papers.
A-B InBev also received clearance for the deal from the Canadian Competition Bureau in September.
15 Nov. 2012