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.
Peroni boosts SABMiller sales in gloomy UK beer market
Pub groups have fallen on hard times as cash-strapped drinkers have flocked to cheap supermarket deals.
But the world’s second biggest brewer revealed sales of Peroni on tap increased by more than 10 per cent as pub goers showed no qualms about forking out ?5 or more for a pint.
Italian job: Profits for the six months to September rose 12 per cent to ?2.28billion
Other big sellers included Pilsner Urquell, which grew by double digits. And the firm more than doubled sales of Kozel, a Czech pilsner launched in 2010 and available exclusively on draught in the UK.
Gary Haigh, head of the brewer’s UK subsidiary Miller Brands, said sales of premium lagers had picked up as pubs – particularly in towns and cities – spruce up their image.
He said the brewer also had to contend with the miserable summer and the ‘hospitality week from hell’ as workers were urged by London’s mayor Boris Johnson to work from home during the first week of the Olympics.
He said: ‘It’s been the year to remember for all the wrong reasons for the industry – fortunately we managed to buck the trend.’
It was a different story over at Aim-listed brewer Young’s, however. The firm (up 19p at 712.5p) said it made the most of the UK’s ‘summer of celebration’ as promotions around the Queen’s Diamond Jubilee and Olympic Games boosted trade. The group, which has 237 pubs across London and the south of England, said the summer’s events helped it overcome a rain-soaked first quarter, with half-year underlying profits rising 11.2 per cent to ?13.9million.
The robust results for SABMiller also came despite the rising cost of barley used to make beer and adverse currency swings. Profits for the six months to September rose 12 per cent to ?2.28billion, with sales up 11 per cent to ?17.5billion.
Further afield the London-based company enjoyed strong profit growth in emerging markets in Africa and Latin America.
But SAB didn’t have it all its own way, with a 5pc drop in profit growth in Europe. As the brewer reports in US dollars the weakening euro also tarnished its figures.
The firm, which spent ?7.4billion last year on Foster’s, said the Australian company ‘contributed significantly’ to first half growth.
It lifted its interim dividend by 12 per cent to 24 cents (15p) a share.
12 Dec. 2012