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.
Elephant beer going down well in India
In 2015, sales increased by 42 percent and the Danish brewery giant is aiming to become second on the Indian market within the next three years.
United Breweries Group is the current leader on the market, followed by SABmiller which also bottles Fosters, Grolsch, Miller, Peroni and Pilsner Urquell, as well as Coca-Cola.
According to Michael Jensen, the managing director of Carlsberg in India, the great popularity of the beer is down to the easily recognisable brand.
“The growth can be attributed to the long-term strategy to focus on key markets, especially cities, focused brand portfolio, expanding manufacturing footprint, increased product availability and above all a strong team,” Jensen told Indian news outlet BrandEquity.
Navigating Indian system
Despite the success, Carlsberg faces numerous challenges in the country, where each of its 29 states has its own rules, and the beer producer is thus forced to have breweries in every single one of them.
Jensen explained that the company now concentrates on 55 main cities and develops its national strategy based on what works there.
Great financial loss
Meanwhile, the company’s financial report for 2015 shows Carlsberg recorded a net loss of 2.6 billion kroner, particularly due to problems in Russia, Eastern Europe and China.
Carlsberg sold 4 percent less beer (based on volume) last year and the company’s operating profit dropped by 8 percent compared to 2014.
15 Feb. 2016