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.
Beer Business (Pivnoe Delo) #4-2012
Interview with Eugene Kashper, co-owner of Oasis CIS
“Moscow Brewing Company” is a unique project for Russia. Having started its operation in the depth of recession, the company has been demonstrating dynamic sales and market share growth for more than 3 years. In the Central region “Zhiguli Barnoye” has won the leading positions in the mainstream segment and the output volume of “MBC” is too large for the company to be classified as a medium sized producer. But Eugene Kashper prefers to call the company a small one, opposing his business approach to the strategies of market leaders. He believes that Russian brands must have historical, cultural and formula roots in Russia. Thus, when buying “MBC” beer consumers can express themselves and distance from the society of mass consumption. However, the further company development will to a large extent depend on the willingness of retail network to deal with alternative products in the new market conditions.
The most important event Ukrainian brewery saw in 2012 is assets merging of two independent producers, namely “First Private Brewery” (Persha Pryvatna Brovarnia) and Oasis CIS. Due to restyling of existing brands the joined company managed to substantially reinforce its market positions, having gained 5% of the market. This became possible thanks to capacity growth of Lvov enterprise as well as to utilization of brewery in Radomyshl.
In his interview Andrey Matsola told about new conditions and market policy and relationships with the business partners.
In 2012 the palette of Ukrainian beer market became much more colorful and interesting. New products «piloted» in Russian beer market were rapidly gaining their market weight at the expense of the old brands. Among the brands launched in 2012 licensed brands, or brands alluding to foreign origin prevailed. Due to them there was a considerable widening of the product range in the upper mainstream and premium segments. By October 2012 the market share of the new brands in the largest Ukrainian cities exceeded 4%, which is not bad at all for a term of one year.
- American King
- Some More "Czech Beer"
- Trying English
- Junior in the "Che" family
24 Jan. 2013