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.
The Russian aluminum king was asked not to destroy the beer industry
At the end of March, the Prime Minister Dmitry Medvedev instructed to accelerate the adoption of the bill on the gradual reduction of production and turnover of alcoholic products in the consumer packaging made of polymeric materials. The Prime Minister suggested the state Duma to consider this issue in the spring session, and to report the results on June 1. The decree was taken following the meeting on Motovilikhinskiye plants in Perm, dedicated to ferrous and non-ferrous metallurgy.
At the meeting, Deripaska said that the rejection of PET would contribute to the development of the aluminum industry. However, the Union of brewers does not agree with his point of view. “Maybe you think that the ban of plastic will switch the consumption of beer in aluminum cans, but it's not. We know our consumers and understand what they are buying beer in plastic because it is much cheaper. Many of them simply can't afford the product in a wonderful package from your “winged metal”. As a result of this ban, they will switch to cheap vodka, and in glass bottles,” this was said in an open letter.
The effect of the plastic ban will result in an additional sale of several thousand tons of aluminum. The market participants predict that the demand for aluminum cans will increase by a few percent, but the demand for beer in general will fall by 20-30%. “The regions will lose 40 billion rubles in taxes, tens of thousands of people lose their jobs, and alcoholism will grow. Do several thousand tons of aluminum worth all of this?” the brewers ask at Deripaska.
According to them, nearly a quarter of the Russian beer is packaged in aluminum cans, it is used glass and PET for the rest. At the same time, the Union of brewers approves the increase in the demand for beer in aluminum cans because it is more expensive and brings higher profits. But the demand will recover without any restrictions, with the rise in living standards, the manufacturers say.
The Union of brewers asked Deripaska not to use his influence in the government and among the deputies for “the destruction of the brewing industry”. It will not bring you any additional benefits, but this will do great damage to the country,” the authors conclude.
We will recall that last year the National Union of Consumer Rights Protection has launched an advertising campaign called “Ban the plastic bottle – save Russia!” The campaign also included the full-screen banners that can be seen on the websites of the newspapers Vedomosti and Kommersant, and billboards on Rublevsky highway. At the same time, the petition for the ban of PET for beer moved on in social networks.
18 Apr. 2016