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.
China. Ziemann Holvrieka has a 40 percent share of the domestic market
"The most obvious opportunity is the modernization of beverage and the food supply chain. That is a big area and there are lots of investments going on there," said Roed. "The demand for beer, milk, yogurt, juice and soft drinks will also provide all sorts of opportunities for equipment and ingredient businesses. We have seen lots of potential in this sector, not only in China, but in many dynamic emerging economies."
Ziemann Holvrieka's factory in Nantong earned more than 100 million yuan ($15.34 million) in overseas markets by supplying beer-making equipment and plant development projects in 2015, up 10 percent year-on-year.
As China is upgrading its manufacturing, the domestic beer segment will inevitably enter an era of saturation where market conditions will be tough, Roed said.
Owing to sluggish market conditions, Carlsberg, the world's fourth-largest beer brewer, plans to close factories in East China before 2018, including some of the assets it acquired from Chongqing Beer (Group) Co Ltd in Anhui and Zhejiang provinces.
So, the ASEAN region and South America will be key to Ziemann Holvrieka as it increases its investment in marketing and resource integration over the next five years, Roed said.
"The great challenge is keeping supply and demand in balance in new markets. I am confident that the balance of supply and demand will be met in markets such as Vietnam and Brazil in the future," Roed said. "Technology and prompt after-sales service are going to be key."
In addition to overseas market expansion, Ziemann Holvrieka is working with its key customers in various countries to deliver innovation in areas such as nutrition, new restaurant menus and risk-management solutions. These innovations will help bring increased product and menu diversity, while ensuring a sustainable source of beverage and food products at a fair value.
Beer consumption is analyzed in terms of outdoor and indoor drinking. Indoor consumption is mostly of medium and high-end products. Outdoor consumption accounts for medium and low-end products, consumed at street vendors and night meal providers. Outdoor businesses are easily affected by weather.
Ding Lixin, a researcher at the Chinese Academy of Agricultural Sciences in Beijing, said it is reasonable for domestic beer and beverage equipment suppliers to seek more market growth points from emerging markets to retain stable growth. For, markets in the ASEAN region, Brazil, Nigeria are not easily affected by cold weather conditions because of their geographic locations.
"Ziemann Holvrieka's equipment and EPC project business, and growing demand for beer and beverage products in emerging markets, have brought more choices to consumers to choose local beer or drink brands, as they have better and more options to pick products that they think are cheaper, safer and better in taste, instead of only selecting beer products from developed markets," Ding said.
1 Mar. 2016