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.
Only 7% of liquor consumed in India is in the beer category
Around 93% of liquor consumed in India is in the spirits category (up to 42.8% alcoholic content), while the consumption of beer (alcoholic content up to 9%) stood at only 7% leaving wine consumption with a statistically negligible figure of 0.1%, according to a survey by All India Brewers Association (AIBA).
Interestingly, the alcohol consumption pattern in developed countries is the other way round with beer and wine scoring higher than the spirits, reveals an AIBA white paper on the beer industry .
Industry experts believe low consumption of hard liquor to be a sign of better public health.
However, one of the reasons for low beer consumption is attributed to high taxation. Higher VAT, service tax es and excise duty leads to beer being priced as much as IMFL or at priced as much as IMFL or at times even more prompting people to go for spirits which give them stronger 'kick' than beer or wine.
Industry experts said in terms of number of cases (bottles totaling 9 liters of beer and not the pure alcoholic content in them) sold, the beer market looked competitive vis-a-vis spirits and country liquor, but this according to them must not be looked as the correct indicator from the perspective of social implication on public health.
Estimates from the NSSO survey show that at the national level, per capita per week consumption of toddy and country liquor was almost twice (1.9 times) the consumption of beer, foreign liquor and wine combined together.
"For Rs 100, a consumer can buy 180 ml of local whiskey, which works out to about Rs 1.3 per ml of alcohol. The same amount will buy a 650 ml bottle of strong beer, but because of the lower alcohol levels, consumers pay over twice as much per ml. Therefore, beer taxation is indiscriminate and does not depict value to the consumer forcing people to opt for hard liquor," AIBA paper said.
"Beer if taxed rationally , positioned more liberally , viewed more positively will wean people away from hard liquor. This will therefore do immense good to society at large if beer is delinked from hard liquor in terms of perception, taxation, availability and distribution," the paper added.
It is observed that an average Indian liquor consumer pays five to six times the manufacturing cost, making liquor prices in India significantly higher than 95 per cent of the countries in the world and more so in case of beer.
8 Feb. 2016