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.
India. Stake hike doesn’t change UBL governance structure: Heineken
"Heineken can confirm that it has acquired in total 21,15,088 UBL shares... The transaction increases Heineken's stake in UBL from 42.2 per cent to 43 per cent...It does not result in any changes to the UBL governance structure," a Heineken spokesperson told PTI in an emailed response.
The spokesperson further said: "Heineken continues to be positive about the prospects of the business in India. India has highly favourable demographics with strong economic fundamentals, so the market remains an exciting opportunity for continued growth."
Last week, Heineken International consolidated its stake in UBL by picking up over 21 lakh shares of Vijay Mallya-led firm for Rs 179 crore through open market transactions.
The spokesperson said Heineken had acquired in total 21,15,088 UBL shares.
"We acquired 6,00,000 UBL shares from Yes Bank for Rs 847 per share, 8,52,548 UBL shares from ECL Finance for Rs 845 per share and an additional 6,62,540 UBL shares from ECL Finance for Rs 847 per share, respectively... The total price was 24 million euro," he added.
Earlier this month, Vijay Mallya left India for the UK amid growing clamour for recovery of over Rs 9,000 crore dues to banks by now-defunct Kingfisher Airlines.
Since then, there have been speculations that Heineken, being the largest investor in UBL, is looking to increase its stake and also take control of the company.
Mallya is under pressure to pay-off the dues. In a stern warning to wilful defaulters like Vijay Mallya, Finance Minister Arun Jaitley has said that they should settle their dues honourably with the banks or else be ready to face "coercive action" by lenders and investigative agencies.
"I don't want to make any comments on individual cases but I think it's a responsibility of large groups like his (Vijay Mallya's) to honourably settle their dues with the banks," he had told PTI in an interview here.
30 Mar. 2016