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.
PepsiCo and Anheuser-Busch InBev Collaborate on Promotion, Marketing
“We’ve worked well together as official [NFL] sponsors,” said Paul Chibe, A-B InBev’s VP for U.S. marketing, to Ad Age.
An image of an in-store promotion sign displays two bags of Doritos, two bottles of Pepsi, two bottles of Bud Light, a Super Bowl logo and a caption: “Super Bowl. Super Team. Super Party.” This idea builds on PepsiCo’s summer campaign entitled “Power of One,” which promoted Mountain Dew with Doritos and Lay’s with Pepsi.
A memo sent by A-B InBev to distributors referred to the promotion as a “National Big Bet” and included a “save up to $8” mail-in rebate coupon alongside images of Bud Light, Doritos and Pepsi.
“We have always worked with cross-merchandising partners in the past, but for 2013…all three [brands -- Doritos, Pepsi and Bud Light] are trying to work together to have flawless execution at retail,” an A-B InBev distributor told Ad Age.
“The promotions between PepsiCo and Anheuser-Busch offer convenience and value to consumers during a variety of occasions. Since we are both official National Football League sponsors, we are in a unique position to kick off the year by helping our consumers celebrate Super Bowl XLVII with brand like Pepsi, Doritors, Budweiser and Bud Light,” said the companies in a joint statement.
While joint marketing can be a challenge, wrote Barclays analyst Andrew Lazar in a report, the promotion could potentially lead to huge profits.
“In our view, the packaging of soft drinks, snacks and beer around a large event makes a great deal of sense, particularly in these channels, and this may be an indication of more to come down the road,” Lazar wrote.
Bill Pecoriello, CEO of ConsumerEdge Research, looked ahead of the promotion and considered what kind of domino effect this deal could influence.
“The news will certainly fuel speculation that ultimately [A-B InBev] might acquire PepsiCo’s beverages business,” Pecoriello wrote in a report.
Pecoriello also noted, however, that an imminent deal is unlikely because A-B InBev will soon close a $20.1 billion acquisition of Mexico-based Grupo Modelo, makers of Corona Extra. Another potential hindrance: PepsiCo is still revamping its beverage business. After 2012, which the company called a “transition year,” PepsiCo will invest an additional $500 million to $600 million to advertise its brands in 2013, especially in North America
14 Jan. 2013