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.
On The Frontier Of Beer In Vietnam
Not that there is not a tradition of beer drinking in the country. The famous freshly-brewed bia hoi can still be found on street corners here and there, but it is in the mass-produced larger sector that things have come on in leaps and bounds.
The Vietnam Beverage Association reports that in 2015 the country consumed 3.4 billion liters of beer, roughly 38 liters for every individual in the country. This was up 10 percent on the previous year, and a whopping 41 percent compared to 2010.
Local brewing giant Sabeco and its range of mass-produced blond largers accounted for slightly less than half of market share, but foreign brewers such as Sapporo and AB-InBev are moving in aggressively also.
A lot of the uptick in consumption is down to the fact that, well, beer is cool again with young adults. Since 2010, ‘beer clubs’, as they are known, have sprouted all over the country. These drinking palaces are pretty much as the name describes: lavishly decorated venues pumping out dance music, with crowds of people gathered in groups drinking beer from a tower device so they can self-serve. The bathrooms come complete with basins set aside for drinkers to purge themselves before returning to the action.
But there are signs, albeit small in the big picture, that the beer market in Vietnam is evolving. Craft beer is ubiquitous in much of the Western world, and local craft brewers are starting to make their presence felt in Vietnam.
Arguably the first to really get the ball rolling was the Pasteur Street Brewing Company, named after the venerable boulevard that bisects downtown Saigon. Unlike most start-up small brewers, they initially only sold their product through their own taproom, located, naturally, on the same street.
15 Apr. 2016