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: C&C Group aims to triple international business by 2016
Currently, international EBIT accounts for 7% of the company's profits, C&C revealed at an investors day in Shepton Mallet on Thursday (29 November). The group is in the process of acquiring Vermont Hard Cider Company and Irish drinks firm Gleeson, but the growth predictions exclude these yet-to-complete deals.
C&C told investors that it expects its international business to make up 15% of its business by full-year 2014 and 20% by full-year 2016. Its products are currently available in 43 countries.
Mark Boulos, C&C's FD, said: “The US is incredibly important to us and we are looking to achieve market leadership nationwide.”
He added that, as cider is gluten-free it “resonates quite well” in the US and is an extension of craft beer for “someone who is looking to try something new”.
Bret Williams, Vermont Hard Cider company's president, said the category is “on the brink of an explosion” in the US.
Meanwhile, in the UK cider market, the company flagged that competition has increased as 43 cider brands are now listed in the average supermarket, compared to 19 in 2005.
But, analysts at Nomura noted that C&C is “exploring ways to further reduce the UK cider cost base and reinvest behind the brands”. This includes a new advertising campaign, driving Magners Golden Draft distribution and exploiting the speciality brands such as Addlestones. Nomura's Ed Mundy said: “Magners is still the modern cider of choice.”
On Tennent's, Nomura suggested the lager brand's growth story is "not over" in the UK, as the company focusses on recruiting new consumers (18-24 year olds) and brand building.
Nomura also sounded a positive note on the Gleeson deal, noting it “should drive greater efficiencies in the company’s route to market in Ireland” and “strengthen the company’s competitive positioning in the market”.
4 Dec. 2012