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.
US. Brewers Association Launches KegReturn.com
Kegs are always the property of the brewery which purchased them and filled them with beer. Many kegs disappear as a result of accidental mishandling, while others go missing due to intentional misappropriation. KegReturn.com offers a convenient way for kegs to get returned to their proper owner.
“Craft beer sales have grown tremendously over the past decade, which means the number of kegs owned by brewers has increased as well,” said Paul Gatza, director of the Brewers Association. “Keg disappearances and the resulting profit loss are hindering opportunities for craft brewers. We must ensure kegs are returned to their owners, it’s the right thing to do.”
According to the Brewers Association, keg loss costs craft brewers between $0.46 and $1.37 per-barrel of annual keg production. Assuming 2011 craft beer sales of 11.5 million barrels, that is a total direct capital charge to craft brewers of $5.3 million and $15.8 million annually. Lost kegs, the association adds, act as an enormous additional and unintended tax on beer, ultimately having a direct impact on job growth and profit reduction for brewers, wholesalers and retailers.
“Understanding the issue at hand is a vital part of finding a solution,” said Ken Grossman of Sierra Nevada Brewing Company and BA Technical Committee chair. “The online resource at KegReturn.com allows people to contact the brewery or their local distributor to return kegs back to the brewery to be filled again with beer. We call on beer lovers and people in the trade to help reunite kegs with their owners.”
For more information on keg etiquette, the keg return program, or for registration, visit: www.kegreturn.com
30 Jan. 2013