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.
US. GR Brewery Announces $26 Million Expansion
The Right Place, a regional non-profit economic development organization, in collaboration with The Michigan Economic Development Corporation (MEDC) and The City of Grand Rapids has announced the approval of $2 million of a Michigan Business Development Program performance-based grant with repayment terms for Grand Rapids-based Founders Brewing Co.
The grant allows the brewery to move forward with its expansion, , which is expected to create 52 new jobs for the area over three years. The positions will range from managerial to service, with the bulk of positions being in the operations and services sector.
“Founders Brewing Co. is a shining star in Grand Rapids, not only from a consumer standpoint but also with regard to economic development,” said Susan Jackson, Senior Business Development Manager, The Right Place, Inc. “This expansion confirms that Grand Rapids continues to find a niche in the craft brewing industry. We are pleased to help Founders Brewing Co. grow in Grand Rapids.”
“The craft beer market continues to grow,” said Mike Stevens, President and CEO, Founders Brewing Co., “and demand for Founders beers has caused our growth to outpace average industry growth. Meeting this demand requires a significant upfront investment in additional facility area and, more importantly, in additional equipment. We are grateful for this incentive assistance, which will allow us to keep up with demand and to be in a position to hire more people to help us grow the brewery.”
In just five years since moving to its Grandville Avenue location, Founders Brewing Co. has increased production and taproom sales to a point where demand requires this expansion.
Demand for the expanded facility will be supported by Founders Brewing Co.’s existing network of 62 distributors across 23 states and new distributors in new markets.
Over $22 million of the $26 million expansion will be used for purchase of new brewing and fermenting vessels and other equipment, while nearly $4 million will be spent on expanding the brewing facility, located at 235 Grandville Avenue in downtown Grand Rapids. Once complete, the brewery will have capacity to produce approximately 300,000 barrels of beer annually, or four times its current capacity.
The expansion will occur in phases, the first of which consists of expanding the brewery’s fermentation hall.
The City of Grand Rapids has also recently offered a 12-year property tax abatement valued at approximately $300,000 for the project.
20 Dec. 2012