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.
India. Inflow of cheap liquor from Goa, Andhra dispirits Karnataka
This reverse trend, coupled with the continued inflow of the low cost liquor from Goa, has dented the State Excise department’s revenue mobilisation to quite an extent.
Over the years, the department had gained a monopoly over sales of liquor in the districts bordering Andhra Pradesh, Tamil Nadu and Kerala. Karnataka’s sales boomed especially after Kerala started to implement prohibition of liquor sales in a phased manner.
However, not wanting to be left behind, Andhra Pradesh by introducing its new liquor policy, has heavily slashed taxes on Indian Made Liquor (IML) to boost its sales and revenue.
According to officials, it launched a cheap liquor brand ‘999 Powerstar Fine Whisky’, which is priced between Rs 42 and Rs 45 per 180 ml bottle. This is considerably cheaper than the brands like Raja Whisky and Haywards, which are sold at Rs 50, by Karnataka. As a result, the sales, which had peaked over the last few years in the bordering districts of Raichur, Ballari, Chitradurga, Tumakuru, Chikkaballapur and Kolar, have come down drastically.
Excise Commissioner S R Umashankar said that the department is also watchful of the Andhra Pradesh brand making its way into Karnataka.
“Until now, our liquor was the cheaper and we registered good sales in the bordering districts, which included consumers from the neighbouring State, as well. With the introduction of the 999 whisky brand, our revenue mobilisation has been dented marginally. Like the Goa and Maharashtra borders, which are porous, the same problem persists on the Andhra and Telangana borders, as well. In Dakshina Kannada we have increased vigilance to check the inflow of Goan liquor, and now we are doing the same on the Andhra-Karnataka border as well.” Between April and December 2015 alone, the department has seized close to 7,500 litres of liquor entering into the State from Goa.
“Goa border (Anmod and Majali) is our main problem. Owing to the low level of taxation, Goa liquor is available at much cheaper rates. Though we have set up two checkposts, liquor is illegally transported not only by boats and trains, but also through forests,” the commissioner said.
Popular Goan brands
Some of the popular brands that are illegally transported into the State are Honey Guide Brandy - Rs 21.60 (180 ml); Honey Grade Brandy - Rs 18; Reals Whisky (750 ml) - Rs 86; Life House Premium Blended Malt Whisky (750 ml) - Rs 90; Light Horse Premium Blended Malt Whisky (750 ml) - Rs 79; Goa Palm Fenny (750 ml) - Rs 90; Goa 77 Deluxe Cashew Fenny (750 ml) - Rs 100.
2 Feb. 2016