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.
SABMiller Flags Weak China Demand As Volume Growth Slows
Beer volumes for the third quarter rose 2% before acquisitions and disposals, representing a slowdown from 3% growth a year earlier and 4% in the first half. Soft drinks volumes increased 3%.
But volumes in Asia-Pacific, excluding Australia, fell 1%, hit by "subdued" demand in China, where volumes fell 3% "due mainly to an exceptionally cold and wet winter across the country." This compares with 7% volume growth in Asia Pacific a year earlier.
Still, the Australian business, which had been under scrutiny following the company's $10 billion acquisition of Foster's in 2011, started to improve with sales for the quarter down 4% on a comparative basis, compared with a 8% decline in the previous six months. Flagship brand Victoria Bitter grew 2%, its first quarter of growth for more than 10 years, and SABMiller said the integration program in Australia is ahead of schedule.
Latin America, the brewing group's biggest region, saw beer volume growth recover to 6%, up from 4% in the first-half, but down from 8% in the same period last year.
Volumes in Africa grew 4%, with South Africa volumes up 3%.
European volumes rose only 1% with some beer markets hit by "depressed consumer confidence", the company said.
In North America, MillerCoors LLC--the joint venture between SABMiller and Molson Coors Brewing Co. (>> Molson Coors Brewing Company)--said domestic sales to retailers were down 1.1%. Domestic sales to wholesalers fell 1.4%. Still, analysts say U.S. beer demand is showing signs of improvement, supported by rising employment.
SABMiller, the world's No. 2 brewer behind Anheuser-Busch InBev NV (ABI.BT ) and whose brands include Peroni Nastro Azzuro, pushed through price increases in some regions which boosted revenue per hectolitre by 5% while revenue rose 8% in the quarter, before acquisitions and disposals on constant currencies.
SABMiller shares closed Monday at 2960.5 pence, valuing the company at 47.26 billion pounds ($74.94 billion).
22 Jan. 2013