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.
Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Why The Beer In South Korea Is Even Worse Than North Korean Beer
THEIR cuisine is one of the world's most exciting. South Korean diners would not tolerate bland kimchi (cabbage pickled in garlic and chili) or sannakji (fresh chopped octopus, still wriggling on the plate). So why do they swill boring beer?
Local brews such as Cass and Hite go down easily enough (which is not always true of those writhing tentacles with their little suction cups). Yet they leave little impression on the palate.
Some South Korean beers skimp on barley malt, using the likes of rice in its place. Others are full of corn. And despite the recent creation of Hite Dry Finish--a step in the right direction--brewing remains just about the only useful activity at which North Korea beats the South. The North's Taedonggang Beer, made with equipment imported from Britain, tastes surprisingly good.
The problem for South Korean boozers is that their national market is a cramped duopoly. Hite-Jinro and Oriental Brewery (OB) have nearly 100% of it. Their beers are hard to tell apart; their prices, even harder. At five out of five shops visited by The Economist, their main brands all cost precisely 1,850 won ($1.70) per 330ml can.
Until 2011, regulations required all brewers to have enough capacity to brew well over 1m liters at a time. This in effect kept all but Hite and OB from bringing foamy goodness to the masses. Smaller producers were allowed to sell their beer only on their own premises.
Today, anyone with the capacity to produce 120,000 litres can apply for a wholesale license. This is still a lot, but there are short cuts. One brewer says the loose wording of the law means some have bought gigantic but shoddy old vats to make up the difference, and simply left them unused.
However, only a handful of small brewers have risen to the challenge. One of them, Craftworks Brewing Company, is owned by a Canadian, Dan Vroon. Mr Vroon's pub in Seoul is packed every night. But several hurdles still make it hard for him to sell his pilsners, stouts and pale ales more widely, he says.
Brewers are taxed heavily if they deliver their own beer. Craftworks' unpasteurized brews must be kept chilled from the vat to the tap, which creates a problem. Cold distribution is a tiny, pricey niche. This is because the big boys don't use it: their beers have their tasty, bureaucrat-bothering bacteria removed at the brewery. They can thus be delivered warm and then chilled in the pub.
Punitive tariffs prevent brewing experimentation. The Korean taxman treats malt, hops and yeast as beer ingredients, which are subject to low import duties. Anything else you might put in the brew is deemed an agricultural import, and thus a threat to the nation's farmers. "Speciality grains like oats aren't on the approved list, so we must pay more than 500% if we want to use them," says Park Chul, another frustrated brewer.
Those who do not qualify for a wholesale licence have it even worse. Though they sell only through their own pubs, government inspectors place meters on their vats. These can become contaminated, causing costly stoppages. "It's enough to drive you to drink," sighs Mr Vroon.
5 Dec. 2012