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.
Ukraine. The beer market is falling, but sales of some companies continue to grow
Shevchenko noted that from 1 July 2015 after providing of amendments to the Tax Code that equating beer to alcoholic beverages, 7 000 retail outlets have been closed in Ukraine, because many sellers can't pay 8 000 UAH for license. For wholesale it costs 500 000 UAH.
He said that now the issues of enhancing the tax burden on the industry are discussing at different levels. We are talking about a possible increase in excise duties by 25% on the recommendation of the International monetary Fund (IMF), and the introduction of a tax on packaging recycling. Now the share of excise tax per liter of beer is 13%.
In 2015, the workload of the Carlsberg brewery was 59%, which is 4.5 percentage points lower than in 2014. The sales decreased slightly slower than the market. The company's market share in value terms has grown by 1.4 percentage points to 29.6% according to the AC Nielsen company’s estimation.
According to Shevchenko, the significant changes were in the dynamics of price segments over the past year. The share of economy segment has declined from 31.7% in 2014 to 30.7% in 2015, mainstream declined from 44.5% to 43.4%, premium increased from 20.9% to 21.2%, and imports increased from 1.4% to 3.2%.
“Most of our innovations last year were aimed at the premium segment,” the CEO of the company added.
Meanwhile, smaller, but active competitors are breathing at the giants’ backs. The founder and CEO of the Persha Pryvatna Brovanya Company (with market share less 5%) Andrew Matsola says to the nv.ua newspaper that despite the falling market he have nothing to complain about.
Last year, the sales volume of his company grew by 18%. “This year the market will fall by 10%, but we plan to grow by 6-10%,” Matsola said.
2 Mar. 2016