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.
Russia. “Soon we’ll have nothing to trade”
“Yesterday I sent several trucks to the stores that had already registered [in USAIS],” commented the businessman from Irkutsk, “Retail cannot confirm the fact of delivery, as the system does not confirm it. The operator of technical support of USAIS said that the waiting time for confirmation may take up to three days. The trucks stayed overnight, because the goods had not been accepted and the temperature outside was 30 degrees below zero. In the morning we opened the truck: all beer had burst – 100 boxes in one truck and 150 in another, the same situation was with wine and champagne. Now I am counting up the damage. The stores still have not accepted the goods and refused to store them at their warehouse, because they consider that the goods are illegal if the system does not confirm them.”
Another wholesaler from Moscow region, who asked not to name his company, said that he solved the problems with the shops by drawing the supplies ex-post 31 December 2015, when the fact shipping had not had to register in the system. “Some stores that are not connected to the system pay to suppliers in cash, i. e. they check the goods past USAIS,” he affirms.
The owner of several grocery stores in Moscow’s suburbs said that USAIS has already worked, but it is very inconvenient. “We make the order to the wholesaler and place this information in the system”, he explains, “The wholesaler for his part enters information about the shipping of goods from the warehouse and the truck with alcohol drives to our address. However, in almost half of the cases when the truck arrives the information entered in the module is not recognized by the system. It is absolutely unclear what to do in this situation: neither the wholesaler nor we want to take risks”.
According to the interlocutor, he has already had storage of alcohol for some items in his retail outlets. “Soon we will have nothing to trade,” he affirms.
15 Jan. 2016