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.
Playboy Lifestyle launches Beer Garden in India
"PB Lifestyle does not have a licence for the magazine. We have nothing to do with Playboy magazine. We are designing a fantastic fusion of fine dining, entertainment, music and some freshly brewed beer. We are trying to bring high standards to Indian beer cafes," said Parag Sanghvi, chairman, PB Lifestyles.
The company has three set formats that include beer gardens, cafes and night clubs. "We plan to open four night clubs, six cafes and 11 beer gardens in tier-I and tier-II cities of India," said Sanghavi.
After opening its first club in Hyderabad and its beach club in Goa, the flagship club is opening in Mumbai in April 2016. Located in upmarket area of Worli, the Mumbai Club promises to raise the bar of parallel formats in India.
Pune's Playboy Beer Garden would be followed by a 12,000 sq ft beer garden in Bangalore in the third quarter of 2016. The company is eyeing business of Rs 45 lakh per month for tier-I cities and Rs 65 lakh for metros. It is also targeting revenue of Rs 135 crore by end of 2018. According to Sanghvi, the F&B business in India, which currently worth $16 billion, has huge market potential.
The design of the garden in Pune replicates the communal Oktoberfest beer benches, chiller tables and luxury seating that can collectively accommodate over 400 people. The garden serves food from around the world with its signature Hef-Burger along with major brands of beer.
In India, Playboy will compete with The Beer Cafe run by Delhi based BBT Marketing, owns 29 outlets across 10 cities, including Mumbai, New Delhi, Chandigarh, Bengaluru, Amritsar, Gurgaon and Pune.
Globally, there are many beer chains like Belgian Beer Cafe and World of Beer. In the UK, the large bar chains include J D Wetherspoon (over 920 outlets), Punch Taverns (4,000 outlets) and Galaxy Pub Estate (1,380 outlets).
26 Feb. 2016