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. Minimum price plan to cut drinking
Ministers believe the proposed 45p minimum price for a unit of alcohol will reduce total consumption by 3.3% and cut the number of crimes by 5,000 and hospital admissions by 24,000 each year, with 700 fewer alcohol-linked deaths annually.
Health experts welcomed the proposal, which is 5p higher than the 40p level floated by ministers earlier this year. But the drinks industry warned that responsible consumers would suffer, with wine and spirits prices being pushed up. The 45p minimum would mean a can of strong lager could not be sold for less than about ?1.56 and a bottle of wine below ?4.22.
And the move faces new legal obstacles, after an opinion issued by the European Commission which warns that the 50p price floor proposed in Scotland may breach EU free trade rules by curbing imports and urged the UK authorities to "abstain" from such a measure.
Meanwhile the Institute for Fiscal Studies calculated that the alcohol industry could gain almost ?1.4 billion from consumers as a result of the move, if purchasing patterns were unchanged. Low-income households would take the biggest hit to their wallets and both heavy and moderate drinkers would feel the impact, said the respected economic think-tank.
While the Government's proposals are "unlikely" to affect prices in pubs or restaurants, they would force up the cost of 60% of alcoholic drinks bought at supermarkets and off-licences, said the IFS. Ciders would be most affected, with 85% of off-licence sales seeing an increase from the current average unit price of 31.4p. But shoppers would see price rises to 72% of lagers, 70% of spirits, 46% of wines and 34% of beers.
The change would force up average grocery bills by around 0.9%, but the weekly spend on food and drink would rise by as much as 8.3% in households with incomes under ?10,000 consuming more than 35 units per adult - about 12-15 pints of beer or four bottles of wine.
The IFS said any controls on minimum pricing should be achieved through increased taxation, which would see any increased spending go to the Treasury rather than the industry. But Home Office minister Damian Green said that minimum prices would reduce consumption. Launching a 10-week consultation, Mr Green said: "The evidence is clear - the availability of cheap alcohol contributes to harmful levels of drinking. It can't be right that it is possible to purchase a can of beer for as little as 20p."
Moderate drinkers will spend an extra ?7 per year as a result of the plans, while harmful drinkers would need to find an extra ?118, officials estimated.
The public purse could lose around ?200 million in duty due to falling sales and there would be a ?500,000 bill for enforcing the rules, plus up to ?16.6 million in "transitional" costs for the industry. But savings on health could be worth over ?400 million annually and the reduction in crime nearly ?13 million.
29 Nov. 2012