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. New beer laws good for business
Six months in jail and a $25,000 fine — that’s what the owner of the only brewery in the state would get if he tried to manufacture beer, he was told.
But engineers have a tendency to want to understand the rules, Lazy Magnolia Brewing Co. owner Mark Henderson said. And between him and his wife, Leslie, the brewery’s co-owner, who also has an engineering background, the couple demanded someone show them the statute. Where did it say they couldn’t take their beer-brewing pursuits to the open market in the state where they were reared and love.
Lawyers and lawmakers had no answer, so Mark went to the head of the Alcoholic Beverage Control, who told him about the fine and jail time.
“Can you show me?” Mark asked. He was told he would get a call back in 30 minutes.
Three hours later, the head of the ABC called him back to say he couldn’t find the law, but that the Mississippi Department of Revenue would have the information.
In attempting to give Mark answers, Ronnie Lynch of the Mississippi Department of Revenue learned for the both of them that there was nothing on the books that outlawed a beer brewing business in Mississippi.
“We thought, ‘Holy Cow’... and then started the process,” Mark said.
That was seven years ago. Now, the Kiln-based brewery sells a variety of ales, stouts and IPAs, including its signature “Southern Pecan” ale in seven states from Texas to Florida. South Carolinians will welcome the brand this month.
The brewery opened in January 2005 with four employees. It now employs 24.
Today, Lazy Magnolia brews more in one month than it did the first two years combined — roughly 17,000 barrels a year or 5 million beers. This July, the brew capacity was updated to hold 60 barrels, up from 15. And by this time next year, the floor space will nearly triple from 10,000 square feet to just under 30,000.
Once the expansion is complete, the company will be able to brew 45,000 barrels a year. By 2018, the plan is to nearly double the number of employees to 50, Lazy Magnolia spokesman Tobie Baker said.
“All of our beers are made in The Kill (Kiln),” Baker said.
Mark said Hancock County supervisors supported the concept, so they were allowed to brew in an industrial zone, tucked between major defense electronics company Selex Galileo and within earshot of football fans at Hancock County High School. And, the location seemed appropriate since Kiln has been called the bootlegging capital of the world.
Offerings include Southern Pecan, described as a nut brown ale, which is made with Mississippi-grown, whole roasted pecans. Southern Gold is a golden honey ale, made with honey provided by Mark’s bee-keeping Uncle Milton in Ellisville. Deep South is a pale ale made with caramel.. Jefferson Stout is a sweet potato cream stout, brewed with sweet potatoes and milk sugar. Indian Summer is a wheat ale spiced with orange peel and coriander.
Southern Gentleman, produced only in smaller quantities, is aged in whiskey barrels on site. And there’s also a variety of seasonal beers, like Ginger Jacque, Southern Hospitality and Gulf Porter. A variety pack, called the Lazy Dozen, will be hitting refrigerated shelves soon.
Lazy Magnolia’s newest regularly brewed beer is now it’s No. 2 best-seller — Timber Beast, a rye IPA and the first beer that takes advantage of a law allowing the sale of high gravity beers, which are those that contain more than 5 percent alcohol.
Timber Beast, which is 8 percent alcohol by volume, was unveiled at a midnight launch party July 1, the day the law went into effect.
Raise Your Pints, a nonprofit that has lobbied lawmakers to allow high quality, higher alcohol-content beers in Mississippi, has had the support of Mark and Leslie for years, Baker said. The group pushed for the high gravity legislation for a number of years before Gov. Phil Bryant signed it into law.
In arguing for House Bill 1422 to increase the amount of alcohol allowed in beer, Rep. Steve Holland, D-Plantersville, reportedly pleaded on the House floor, “If you’re a Baptist and can’t stand this bill, just hold your dern nose and vote for it cause your Baptist colleagues back home will appreciate it.” The words have now become a sort of slogan for Raise Your Pints.
Another new law, Senate Bill 2600, which also went into effect July 1, allows tour guides to offer tastings at the brewery. Prior to the law change, tours were offered only Saturday mornings. Now, enough tourists come through to support tours Thursday and Friday afternoons and all day on Saturdays.
Tour Guide Josh Poole said on a busy day, he probably sees seven to 10 times more people taking tours, compared to before the law change.
Mark said it certainly would have been easier to start their venture, which was named after the slow-growing Magnolia tree outside the couple’s Mississippi house, out of state.
“Mississippi has not historically made it easy to do a lot of the things you would like to do.”
Nonetheless, Mark said he and Leslie are committed to Mississippi. He’s from Cleveland, and she’s from Waynesboro and they met in Columbus at the Mississippi School for Mathematics and Science.
“Our preeminent export has been our people, and the way to keep your best talent is to have a culture that supports jobs,” Mark said. “We wanted to stay here and do our best to make Mississippi a better place.”
And if that means more competition, than Lazy Magnolia welcomes it. Three breweries are in the early stages of setting up shop. That’s a good indicator that the state’s palate for beer is becoming more sophisticated, Baker said, since craft beer is about mass flavor rather than mass consumption.
“For every dollar (other Mississippi breweries) spend marketing, it helps us just as well to educate Mississippians,” he said. “We welcome new craft breweries to the state.”
26 Nov. 2012