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.
Russia. Beer production to decrease by only 5.1%, the USAIS “helped” to improve forecasts
Probably, the sharp increase in production at the end of the year is not due to the market factors, but the desire of brewers to overstock the warehouses of distributors and retailers in the run-up to joining of the wholesale and retail segment to the Unified State Automated Information System of registration of alcohol (USAIS).
The concerns of brewers were not groundless as constant failures and problems with the system settings occurred. In particular, on Friday, January 22, the USAIS hung and was not operating for a few hours, as several participants of the alcohol market out of the wholesalers for whom joining to the USAIS became obligatory since January 1, 2016, said to the newspaper "Vedomosti".
The disruptions of the accounting system began about 14.00 by Moscow time, as Herman Epstein, the Vice President for information technology of the Baltika brewing company (Russian subsidiary of Carlsberg Group) said to "Vedomosti". The system started responding to requests so slowly that we had to temporarily suspend the efforts of documents’ registration.
In cases where trucks had already left to the recipients, they also failed to register the acceptance. "There are queues of cars near all retail chains. And, if beer is in the freezing temperature for a few hours, it turns to Ice beer," jokes Epstein. The disruptions in the USAIS operation ended only by Friday evening, he said.
According to Epstein, the losses due to the disruptions will be calculated from the cost of spoiled beer, fines from the retail chains, transport downtime and the payment of overtime to employees. How much the downtime of the USAIS will cost Baltika has not been counted yet. "If the system hangs for an hour, then the net losses are about 10% of the cost of shipment, then this percentage increases significantly every hour," said the interlocutor to "Vedomosti".
27 Jan. 2016