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.
China. Empire Brewing Co. in Syracuse launches second ‘tea beer’ venture with China
The new beer - Kuding-Ta IPA - is flavored with the bitter kuding herb, the leaf of the Chinese holly plant, plus New York-grown Chinook hops.
It's part of plan to grow the Empire Brewing Co., which operates an Armory Square brewpub and is currently building one of New York's largest craft breweries off Route 13 in Cazenovia.
The goal is to expand Empire's brand identity beyond the Empire State -- and into the world's largest economic market.
In Central New York, Kuding-Ta IPA will available in about two weeks on tap at Empire's Armory Square brewpub, 120 Walton St. At the same time, a Chinese-made version will debut in the brewpubs operated by Panda Brew of Beijing.
The beer will then be made by Panda Brew in China. The company has 4 brewpubs and sells packaged beer in 40 Chinese cities.
"It's a way to get our name into the Chinese market, and get Panda Brew's name out here,' said Empire Brewing owner David Katleski.
The joint venture with Panda Brew is the second collaboration between Empire and a Chinese company. The first collaboration, with China's Jingwei Fu Tea company, produced a beer called Two Dragons Ale. It debuted at the Syracuse brewpub in February.
Both grew out of a trip Katleski took to China in 2014 with a delegation sponsored by CenterState CEO, a local business development group.
The difference: Jingwei Fu is a tea company but not a brewer like Panda. Empire is gearing up to produce Two Dragons at an as-yet-unnamed Upstate New York brewery for the Chinese market.
The Kuding-Ta IPA will be brewed independently by both Empire and Panda.
Empire head brewer Tim Butler had been discussing the formulation of the new beer for the past several weeks, over the messaging service Wechat, with Panda co-founder and brewer Pan Dinghao. They didn't finish the final recipe until meeting early Tuesday, hours before the beer went into the brew kettle.
The beer will be a light golden ale, Butler said. The kuding herb offers enough bitterness and unique flavor and aroma that the brewers decided to only use it for the brewing, saving the New York Chinook hops for a late addition to give the beer an American hop aroma.
Kuding, Pan said, has a taste that starts very bitter but mellows over time. In China, kuding is also used for medicinal purposes, including reported benefits to eyesight, blood pressure and a reduction in the aging process.
Pan joined fellow Panda Brew founder Kurt (Yu) Xia in Syracuse Tuesday for the brewing of the first batch of Kunding-Ta IPA.
They will also take a tour of the Empire Farmstead Brewery, which is under construction off Route 13 just south of the Lorenzo State Historic Site in Cazenovia. Katleski is hoping to start production there by May.
The new brewery will have a 60-barrel brewhouse, which will land it among the ten largest in New York state. (A barrel is 31 gallons). It will be able to produce about 70,000 barrels a year, compared to the 1,200-barrel annual capacity at Empire's Armory Square brewhouse. (In the meantime, Empire is producing beer under contract at Brooklyn's Greenpoint Beer Works to meet its demand).
23 Dec. 2015