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. The range of alcohol in restaurants can be halved
Since 1 January 2016, with the expansion of the scope of the USAIS, the restaurants and cafes have lost the ability to legally purchase alcohol at retail stores and sell it. Igor Bukharov, the Chairman of the Federation of restaurateurs and hoteliers, explained this to Izvestia.
According to him, the USAIS system allows the registration of alcohol purchase by catering only at the company-wholesaler. The alcohol purchased at retail trade for selling at the restaurant drops out of the accounting system and would be considered by competent authorities as counterfeit. Also, HoReCa establishments of the same network lost the ability to reallocate the deliveries of alcohol from one place to another.
Alexei Nebolsin, the representative of “Opora Rosii”, is convinced that the range of alcohol in catering could decrease by 30-50%. “HoReCa turned out to be the least prepared for the introduction of the USAIS. First, only on 16 December they received an official letter from Rosalkogolregulirovaniy informing that they, like the retail trade, have to connect to the system. Second, HoReCa unlike stores has never formed a large stockpiles of alcoholic beverages,” Nebolsin explained the reasons of the upcoming shortage.
The USAIS system has no possibility to account the purchase of a bottle sold in a retail store. Small regional restaurants and cafes that provide the diversity only due to the purchase of alcohol in retail have serious problems with the purchase of alcohol. According to him, there are restaurants where wholesale suppliers do not even reach.
According to the Federation of restaurateurs and hoteliers, alcoholic products take up 40-50% in the turnover of cafes and restaurants and 80% in the turnover of bars. About 3% of the alcohol is realized though the catering.
Rosalkogolregulirovanie reported to “Izvestia” that according to the rules of the USAIS, HoReCa, which is retail, did not have the right to purchase alcohol from other retailers before.
We remindl that the USAIS that has been implemented in the production of strong alcoholic drinks since 2006 to account the production of alcoholic beverages. The USAIS helps to control the charging of excise duty as well as impedes the implementation of counterfeit goods.
20 Jan. 2016