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.
Belgian lawmakers bitter over French beer tax
The Belgian Senate voted unanimously on 21 November on a resolution calling on their government to take a discrimination plea to the European Commission.
Belgian brewers currently export 32% of their beer to France, so the excise duty increase could hold serious consequences for employment in the industry, Liberal Senator Yuri Vastersavendts (Open VLD) said in a statement.
In the 1980s, the European courts quashed the decision by the United Kingtom to raise taxes on wine to favour domestic beer production. “The fiscal policy of a member state should not serve to consolidate the existing drinking habits to increase the advantage acquired by national industries”, the senator said.
Belgian Prime Minister Elio Di Rupo did not manage to convince the French president, Fran?ois Hollande, to backtrack on the proposal during a visit to Paris on 27 November, according to the Flemish news service Deredactie.be.
In France, the National Assembly has rejected an amendment aiming to reduce the excise tax on beer to 120%, from the previous proposal of 160%. On 3 December the French Parliament approved the bill, which is expected to take effect 1 January 2013, barring European intervention.
"The most remarkable aspect is the discriminatory, protectionist nature of this decision," said the Belgian Brewers' Federation. "By contrast, there is almost no excise on wine and no increase is planned."
While Belgians industry argues that the price of a beer in France will rise by 20%, French figures say the increase will only come to some 25 cents for a standard bottle.
The price of a beer in Britain could also rise, with English and Welsh ministers proposing a minimum price of ?0.45 (€0.56) for a unit of alcohol as part of a push to tackle problem drinking.
7 Dec. 2012