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.
India. Telangana gears up to meet demand for beer this summer
The sale of beer increased by 20 per cent over the summer months last year and there was a record sale of 180 lakh cases up to June, according to Excise Commissioner and corporation managing director R.V. Chandravadan.
He told The Hindu that the demand was likely to touch 40 lakh cases a month, while it is only 25 lakh cases a month during the off season. Hence, the corporation had made arrangements to hire private and temporary godowns for its storage.
Mr. Chandravadan convened a meeting with beer manufacturing units and officials of the Excise Department and the TSBCL on Saturday in view of reports about the possibility of the hottest days ever in Telangana shortly. The meeting discussed that major beer producing States like Maharashtra and Karnataka might ban export of the drink like they did last year during peak summer.
Hence, the State should be self-sufficient to meet the local demand for regular brands of beer, while importing premium brands and the canned beer which was not manufactured by any of the breweries here.
The canned beer constituted only one per cent of the total demand.
The planning of the corporation for heavy sale of beer comes at a time when there was a fall in consumption of Indian Made Foreign Liquor. The loss of revenue to the government from sale of IMFL will be compensated by off take of beer.
The government has permitted the breweries to drill extra borewells in their premises to fetch water for production, since all permanent sources have dried up. They could also hire water tankers in a big way, Mr. Chandravadan said. The TSBCL presently had 20 lakh cases of beer in all its 17 IMFL depots, which in itself was a record.
The five breweries in the State – which are all located in Medak – were fully equipped to manufacture and supply over 40 lakh cases a month. One brewery, M/s. Lilasons, had stopped production since April last year due to its internal problems.
The brewery managements requested the Commissioner to waive additional licence fee for running the units extra time due to water shortage and low profit margins. They informed him that they also had 10 lakh cases ready for despatch to depots.
8 Feb. 2016