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. Brewers association pitches for more outlets, relaxed taxation to Karnataka government
“We can really expand the market and grow to 40 million cases easily, if more beer and wine outlets are opened,” said Shobhan Roy, director general of All India Brewers Association (AIBA). As part of its recommendations to the state excise department made earlier this week, AIBA has asked for opening 2,500 more beer and wine shops in the state.
Karnataka currently has 3,900 liquor shops selling 30 million cases of beer every year. Southern states of Andhra Pradesh, Tamil Nadu and Karnataka account for almost half of all beer consumed in the country.
The move comes two months after chief minister Siddaramaiah said that the state is considering issuing more licensees after a gap of over two decades.
“The government has not issued any fresh licence for liquor stores for several years. The population has grown in the last two decades and there is demand to issue fresh liquor licenses. We will consider issuing the license in the coming days,” Siddaramaiah said in December.
AIBA has asked for exclusive beer and wine shops to sell alcoholic beverages with lower alcohol content.
Beer makers in India, which is a large whiskey and rum market, have lobbied for years to exclude beer from the high taxation structure on Indian Made Foreign Liquor (IMFL) despite the drink’s lower alcohol content.
To be sure, state governments levy hefty taxes on liquor, specially those with higher alcohol content, as a means to curb consumption of alcoholic beverages in the country. Beer has alcohol content in the range of 5-8%, while IMFL has alcohol content around 42.5%. Beer accounts for less than 8% of all alcoholic beverages consumed in the country, with 270 million cases of beer sold annually.
AIBA has also argued against levying hefty tax on bottled beer in the state saying tax on IMFL is lower than tax on beer.
“Rate of taxation on spirits is much more in other states... we are telling state government (in Karnataka) to not allow beer to subsidize spirits tax,” he added.
In 2015, beer sales fetched the sate government a total of Rs.1,570.64 crore in excise revenue.
25 Feb. 2016