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.
UK: Mitchells & Butlers FY profits flat in “challenging” UK
Net sales edge up by 3.3% to GBP1.86bn
Restaurant, pub group expects economic environment to remain “challenging”
Mitchells & Butlers (M&B) has seen full-year profits stay flat, but branded its performance “resilient” after dealing with tough UK economic conditions.
Operating profits in the 52 weeks to the end of September edged up by 1% to GBP297m (US476.5m), the UK's largest managed operator of restaurants and pubs said today (27 November). Sales in the 52-week period were up by 3.3% to GBP1.86bn, while EBITDA was up by 0.7% to GBP407m.
The company said that food sales continued to drive overall sales growth as its focus shifts to the eating-out market.
A major “business change” programme has been implemented this year, M&B said, which involves putting “guest service” at the core of the business.
After a period of management turbulence, the group appointed Martson's Alistair Darby as its chief executive in September. M&B was without a chief executive for 11 months after Jerermy Blood stepped down from the group in October 2011.
Bob Ivell, non-executive chairman, said: “This year we have initiated a significant cultural change programme focused on streamlining internal processes and placing the guest at the heart of everything we do.
"We have restructured the way we support our operations teams, reduced our central costs and increased the accountability of our senior executives for their brands.”
Ivell said having appointed Darby his focus will now shift to “enhancing the balance, skills and compliance of the board through the selection of appropriately qualified independent non-executive directors”.
Looking ahead, the group said it expected the economic environment to remain challenging. “Further inflationary and regulatory cost pressures will impact the business in the new financial year, with ongoing alcohol duty increases, further food price inflation and other cost increases, coupled with continued tightness in consumer incomes.”
Shares in the group were down today by 6% at GBP3.11.
28 Nov. 2012