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.
Contraband beer and liquor seized in Malaysia
In a report by Singapore’s Asia One, the Selangor Customs director, Datuk Badaruddin Mohamed Rafik confirmed that officers raided 345 stores this year as part of its anti-contraband Ops Outlet which began in 2010.
“We have arrested 111 suspects and of that number, 96 were compounded with a total value of over RM200,000,” he said in a public statement.
More than RM4.29 million (US$1 million) was seized over the last 12 months in the form of 533,274 litres of beer and liquor and then disposed of, after Customs officers checked the stamps on the bottles to check if they had been smuggled in or had entered the country legally.
“Disrupting criminal trade is at the heart of our strategy to clamp down on the illicit alcohol market, which costs the Government millions of ringgit every year. This is the theft from the taxpayers and undermines legitimate traders,” Badaruddin added.
According to the Confederation of Malaysian Brewers Berhad (CMBB), compared to neighbouring Asian countries, Malaysia continues to levy the highest excise tax rate on beer and stout. Following three consecutive tariff hikes from 2004 to 2006, Malaysia now has the second highest duty on beer in the world after Norway. The excise duty for beer is currently RM7.40 per litre (US$1.7) plus 15% ad valorem tax.
The high excise duty imposed on the industry impacts the affordability of legitimate beer products for consumers and as a result it is estimated that that the Malaysian government loses over RM900 million (US$211 million) annually in alcohol tax revenue including excise and import duties due to the illegal smuggling of contraband beer and stout products.
18 Dec. 2015