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 China Partner Said to Pick Banks to Advise on Snow JV
China Resources Beer picked advisers including HSBC Holdings Plc, Nomura Holdings Inc., Rothschild and UBS Group AG, said the people, who asked not to be identified as the information is private. The state-backed company has been weighing a purchase of all or part of SABMiller’s 49 percent stake in China Resources Snow Breweries Co., maker of the world’s best-selling beer, people with knowledge of the matter said last month.
Anheuser-Busch InBev NV may need to sell the stake in the brewer of Snow lager to secure Chinese antitrust approval for its 73 billion-pound ($109 billion) acquisition of SABMiller, which will create a beermaker controlling about half the industry’s profits. SABMiller’s stake in the Chinese venture could fetch as much as $3.6 billion, Nomura wrote in a Nov. 16 research report.
Frank Lai, China Resources Beer’s chief financial officer, declined to comment. Spokesmen for HSBC, Nomura and UBS declined to comment, while a representative for Rothschild didn’t immediately respond to an e-mail seeking comment.
China Resources is seen as the logical buyer if AB InBev decides to sell, as it has a right of first refusal, people with knowledge of the matter said last month. AB InBev hasn’t yet decided whether it will sell the stake, and China Resources isn’t set on any particular course of action, the people said at the time.
Beer sales in China will expand 41 percent in the five years through 2019 to reach 683 billion yuan ($105 billion), according to a June report from research firm Euromonitor. SABMiller said its Chinese beverage volumes declined 3 percent in the first half of its fiscal year due to crimped consumer spending, even as China Resources Snow outperformed the market.
Snow beer, which had a 23 percent market share in China last year, outsells all other beers globally, Euromonitor data show. The partnership between SABMiller and China Resources, which began with two breweries in 1994, operates more than 90 breweries across China and employs more than 59,000 staff, according to SABMiller’s website.
22 Dec. 2015