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.
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