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.
Indonesia. Diageo to set up plant in Bali to produce its alcohol-free drink Guinness Zero
The move follows the regulation introduced by the Indonesian government earlier in the year that bans the sale of alcohol beverages in mini-markets and small shops. A few months later, Diageo introduced Guinness Zero in the country. It has spent about $1m (£669,960, €910,844m) so far on the launch.
Graeme Harlow, the managing director of Diageo, said: "We already had plans to enter the zero-alcohol beer market. After the ban came in, essentially it made it even more important."
The high production cost of Guinness Zero is Diageo's most immediate hurdle as the alcohol-free drink retails at half the price of a can of regular Guinness beer. The new plant is aimed at bringing down this cost.
Until the new plant becomes operational, it will continue to import Guinness Zero from Ireland, which makes the drink expensive because of huge transportation costs and a 10% duty.
Another hurdle for the company is the competition from the country's favoured Multi Bintang's Bintang Zero, a light and lemony zero-alcohol beer. Apart from the Guinness and Bintang options, consumers have two alcohol-free options from Dutch brewer Heineken.
While Diageo has introduced its alcohol-free drink in other markets under other names such as Kaliber in the UK and Malta in Nigeria, in Indonesia, it will retain the Guinness brand name. "We wanted it to be Guinness-branded and we wanted the product to be distinctively Guinness," Harlow said before adding that Guinness Zero will not be introduced beyond Indonesia.
Blaming the new Indonesian regulations, the company said that its net sales in Southeast Asia for the year ended June declined 28%, even as sales in the Asia Pacific region increased 64% year-on-year to £2.2bn.
Harlow said sales of Guinness and Diageo's other alcoholic beverages have fallen 40% year-on-year, since the ban took effect earlier in the year. Though the company is still selling its regular Guinness in large supermarkets and restaurants, the number of total outlets where it is available has reduced from about 70,000 to just 40,000 as a result of the ban.
The London-headquartered alcoholic beverages company currently has about a 15% share in the Indonesian beer market with sales of about 400,000 hectolitres. Until 2014, the country was its fifth biggest market for Guinness.
29 Dec. 2015