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.
Japanese craft beer is finding a warm welcome away from home
But it's a different story in overseas markets, where Kiuchi Brewery is busy writing its own chapter of growth.
MADE TO SHIP
Sporting an iconic owl mascot and bold, English-heavy labels, Kiuchi Brewery's Hitachino Nest line of beers is often mistaken for imports by Japanese drinkers. And yet it is their "Japanese-ness" that has helped make these beers a hit elsewhere in Asia.
In Singapore and Bangkok, it is not difficult to find restaurants that offer Hitachino Nest on tap, and locals are lapping it up.
"Japanese ingredients like local rice and malt mean the beer goes well with Asian food, unlike the same kind of imported Western beer," said a 29-year-old Thai man who has been a big fan of Hitachino Nest since he first came across it at a restaurant in Bangkok. In his opinion, "Hitachino is a mixture of East and West."
According to the National Tax Agency, Japan had 173 craft beer makers as of March 2014. A survey from corporate credit researcher Tokyo Shoko Research in 2015 showed at least 22 makers export their wares.
Kiuchi has partnered with about 30 foreign distributors, and Hitachino Nest is now sold in more than 30 markets. Its total overseas annual sales volume is 3 million bottles (330ml per bottle), or roughly 1,000kl. That's an impressive figure, considering that 77% of Japanese craft beer makers produce less than 100kl a year, according to the National Tax Agency.
Kiuchi's headquarters is in Naka, Ibaraki Prefecture. Located two hours from central Tokyo, Naka is typical of smaller Japanese cities: It has a population of just 54,000, and there are no tall buildings to interrupt the view of houses, farms and rice fields.
From the outside, Kiuchi's office and factory have the appearance of a traditional wooden building. The people and the facilities inside, however, are anything but old-fashioned. The factory is mostly automated, and the staff, wearing owl-emblazoned jerseys, welcome guests for tours.
Indeed, the company has a history of adapting to change.
24 Mar. 2016