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 Revenue Beats Estimates on Premium Beer Demand
Revenue at the maker of Grolsch and Peroni rose 8 percent on an organic basis, which excludes the effects of acquisitions and disposals, the London-based company said today in a statement. That was ahead of the 6.5 percent median estimate of 11 analysts surveyed by Bloomberg News.
The report shows price increases and an appetite for more premium tipples buoyed sales in Latin America, one of SABMiller’s biggest regions, even as cold weather in China and lackluster consumer spending in Europe damped demand for thirst- quenching lagers, causing volume growth to miss analyst estimates. SABMiller’s shares rose as much as 1.4 percent in London trading to 3,000.5 pence.
“We think the revenue beat will offset the volume miss,” Anthony Bucalo, an analyst at Banco Santander SA in London, wrote in a note today. Santander recommends buying the stock.
SABMiller gets most of its revenue from emerging markets including Latin America and Africa, where volume rose 6 percent and 4 percent, respectively. The brewer said in November that it had seen “moderation of economic growth” in some countries, though emerging-market growth potential remained strong.
“The positive surprises come in high-margin areas and the misses in low ones” in the report, analysts at JPMorgan Chase & Co. in London wrote in a note.
So-called organic lager volume increased 2 percent in the third quarter, lower than the 3 percent median estimate of analysts surveyed by Bloomberg News.
Volume in Europe gained 1 percent, less than the 5 percent median analyst estimate, as markets including Poland and the Czech Republic suffered “depressed consumer confidence,” the company said. Volume in the Asia-Pacific region showed an unexpected 1 percent decline, missing the median estimate for a 5 percent gain, as China’s wet weather depressed spending. China represents about 20 percent of group volume, but only 2 percent of profit, according to analysis by UBS AG.
SABMiller bought Foster’s Group Ltd. in 2011 for about A$10.5 billion ($11.1 billion), which boosted first-half earnings in Asia. The Australian brewer has higher margins than SABMiller, which is aiming to increase sales of pricier, more profitable beers in that country as volumes wane.
Australian volume slid 4 percent in the quarter, an improvement from the first half’s 8 percent decline. Volume fell 15 percent including the loss of some discontinued brands.
Sales to wholesalers at the company’s U.S. joint venture MillerCoors LLC dropped 1.4 percent, according to the statement. South Africa, where the brewer was founded, showed a 3 percent increase in volume, ahead of estimates.
23 Jan. 2013