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.
New poll shows minimum pricing will undermine the great British pub
YouGov polled 1261 people who had had an alcoholic drink in the last week1 to find out whether a minimum price would make them more or less likely to go to the pub. The results show that at a minimum price of 45p:
Less than 1%(0.36)% say they will drink less at home and more in the pub
39% will drink less in the pub
45% will continue to drink the same as they did before, both at home and in the pub
Pubs in some regions will be more affected than others, with 54% of people surveyed in the West Midlands saying they’ll drink less in the pub compared to 28% in Scotland
People who are constantly struggling to keep up with their outgoings are the most likely to drink less in the pub (56%)
The report also shows that some people will cut back on other things in order to cover the increased cost of what they drink at home.
16% of respondents said they would be very or fairly likely to cut back on other areas of spending; of those struggling or falling behind with their outgoings this rose to 24%
17% of those who thought they would end up spending more on alcohol said they would cut down on leisure activities, for example going to the cinema, and 16% said they would cut back on clothing
13% of those struggling or falling behind with payments said they would cut back on food, compared to 8% of the general population. 18% of 18-24-year-olds said this was also something that they would do.
Commenting, SABMiller’s Senior Vice President of Industry Affairs, Mike Short said:
“This shows that people don’t behave in the way computer models predict. If the Government really wants to cut anti-social binge drinking it needs to tackle that culture with better education for parents and in schools, targeted local schemes and proper enforcement of the existing licensing laws.”
Tim Martin, Wetherspoon’s Chairman, said:
“The fact that less than 1% of people said they would drink in the pub more often and less at home puts paid to the Government’s claim that minimum pricing will help the UK pub industry.”
Notes to editors
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,115 adults , of which 1261 had drunk in the last week. Fieldwork was carried out between 7 and 9 January 2013. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
The explanation of minimum pricing included in the survey was as follows:
There have been proposals to change the law so that there is a minimum price for alcoholic drinks, according to how much alcohol they contain. If this law is passed, some drinks sold in shops and supermarkets will increase in price. A minimum price of 45p per unit has been suggested, which according to the Wine and Spirit Trade Association would see 52% of prices in supermarkets and off-licences rise overnight.
Below are some examples of expected price rises:
A 12-pack of lager (4% ABV) would rise in price from ?8 to ?9.50
A bottle of wine (13% ABV) would rise in price from ?3.69 to ?4.39
A bottle of vodka (37.5% ABV) would rise in price from ?9.00 to ?11.81
A bottle of whisky (40% ABV) would rise in price from ?10.32 to ?12.60
A 2 litre bottle of cider (5% ABV) would rise in price from ?3.20 to ?4.50
SABMiller plc is one of the world’s leading brewers with more than 200 beer brands and some 70,000 employees in over 75 countries. The group’s portfolio includes global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch; as well as leading local brands such as Aguila (Colombia), Castle (South Africa), Miller Lite (USA), Snow (China), Victoria Bitter (Australia) and Tyskie (Poland). SABMiller also has a growing soft drinks businesses and is one of the world’s largest bottlers of Coca-Cola products.
In the year ended 31 March 2012 the group reported EBITA of US$5,634 million and group revenue of US$31,388 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.
29 Jan. 2013