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.
Foreign brewers strengthening foothold in Vietnamese beer market
The Vietnam Beer Alcohol Beverage Association (VBA) estimated that Vietnam’s beer output was 3.4 billion litres in 2015. Sabeco continued to be in the lead with 1.38 billion litres, followed by Vietnam Brewery Limited with 720 million litres, Habeco with 667.8 million litres, and Carlsberg with 229 million litres. These four brewers accounted for 88.4 per cent of the market.
Sabeco saw a 2.2 per cent growth in output last year, while the whole sector’s output grew by 8.2 per cent, from 3.14 billion to 3.4 billion litres. Meanwhile, Vietnam Brewery Limited surpassed Habeco to become the second in terms of output.
Former Sabeco chairman Phan Dang Tuat said competition had become very fierce, with brewers competing at each sales point in big and small cities alike.
A few years ago Tuat enlisted a foreign marketing expert to help Sabeco recover 800 sales points. Two years later the expert returned to Vietnam Brewery Limited. Tuat said the expert could now earn between $4,000 and $5,000 at Vietnam Brewery Limited compared to the VND40-50 million ($1,900-$2,300) at Sabeco.
“But more importantly, foreign companies are very determined and fast in expanding their market shares while domestic companies are slower,” he said.
Besides foreign brewers that have been present in the market for a long time, new players such as Sapporo, AB-InBev, and Thai brewer Singha, through its 25 per cent ownership in Masan Consumer Holdings, are expanding aggressively.
Sapporo recently bought all of Vinataba’s stake in their joint venture to make it wholly foreign owned, showing the Japanese firm’s commitment to the Vietnamese beer market. Afterwards it changed the packaging and is now expanding its distribution chain.
AB-InBev in May started production at its factory in the southern province of Binh Duong, with the annual capacity of 50 million litres. The company is going to increase its output to 100 million litres per year and is now aggressively advertising on TV at prime hours.
Meanwhile, Masan Brewery HG started production at its 100 million-litre brewery in the Mekong Delta province of Hau Giang last December.
According to VBA data, as of the end of 2015 Vietnam had 129 beer production facilities, down 12 compared to 2010, but the number of factories with the annual capacity of between 50 and 100 million litres has increased. The capacity of the whole sector is now 4.8 billion litres per year.
VBA president Nguyen Van Viet said sales grew by 4.7 per cent on-year in 2015, but the rate of growth is smaller than in previous years. The association predicted that in the next ten years sales would be around 5 billion litres. Draught beer, which now accounts for 1 per cent of the market and is sold at retail points and restaurants, is expected to grow well in the near future.
15 Jan. 2016