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.
Pham Chi Lan: “Vietnamese are the biggest beer drinkers in the region”
“Vietnamese are the biggest beer drinkers in the region. Meanwhile, Vietnam is a poor country with low income per capita,” Lan said, adding that Vietnam still asks for aid, while there are many programs on hunger alleviation and hunger reduction that need to be run in the country.
She also said that drunkenness was the reason behind high number of traffic accidents cases and family violence.
During the eight days of Tet holiday, 5,000 people were hospitalized after fights and 13 of them died. Many of the victims were drunk, according to reports.
Though the State prohibits state officials from drinking alcoholic beverages during working hours and at lunch, the ban has not been respected.
“One time I talked to the chief representative of JICA (Japan International Cooperation Agency) in Vietnam. He said that Vietnamese officials sometimes invited him to drink the expensive liquor worth thousands of dollars that Japanese dare not drink,” Lan said.
“Vietnamese officials use very luxurious things such as watches, smartphones, and cars which are much more expensive than the living standards in Vietnam,” she related.
“Japanese may think: why should we assist Vietnam if Vietnamese are so rich,” she said.
The head of JICA in Vietnam did not comment what he thought about at this moment, but he might surmise that a part of the money from the Official Development Assistance program has gone to embezzled officials’ pockets instead of to the poor.
According to the Vietnam Beverage Association (VBA), Vietnam consumed 3.4 billion liters of beer in 2015, an increase of 10 percent over the year before and 41 percent if compared with 2010.
With the beer consumption increasing from 2.8 billion in 2012 to over 3 billion liters, Vietnam has become the biggest beer consumer in South East Asia.
According to Vu Minh Hanh from the Healthcare Strategy and Policy Institute, the average beer consumption per head in the world remains unchanged over the last 15 years, at 6.2 liters per annum.
Meanwhile, Vietnamese beer consumption level has increased rapidly from 4 liters in 2003-2005 to 6.6 liters.
Lan and some other economists have proposed a higher luxury tax on beer, liquor and wine products.
If the government taxes does so, it would have more money to spend on health care and education and would be able to lower taxes on petrol and other essential goods.
1 Mar. 2016