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.
Heineken Beer Volume Beats Estimates on Asia, Americas
Beer volume rose 7 percent, the world’s third-biggest brewer said Wednesday in a statement. Analysts expected 2.4 percent growth. The figure excludes the impact of acquisitions, disposals and currency swings. Profit fell 54 percent to 265 million euros ($301 million) due to a 379 million-euro capital gain last year from the sale of a Mexican packaging unit. The shares rose 3.2 percent as of 9:08 a.m. in Amsterdam, having touched a record 86.95 euros.
It’s a “blowout performance,” wrote Jonathan Fyfe, an analyst at Mirabaud. “The quarter is an advert for Heineken’s favorable market positioning across the Americas region.”
The surprise is a large one for Heineken, which has reported sales within 1.5 percentage points of the analyst consensus in each of the past 10 years. The underlying business in Asia was also strong, Fyfe said.
“Can we analysts be quite that badly wrong?,” Andrew Holland, an analyst at Societe Generale, said by phone. ‘‘Well, yes we can, but the company did also flag the timing of New Year celebrations in China and Vietnam and other one-offs.”
Beer volume in Asia Pacific rose 23 percent, boosted by Vietnamese and Chinese new year celebrations. Growth in the region was almost five times faster than the 4.5 percent median analyst estimate. In Africa, Middle East and Eastern Europe, volume growth was led by Ethiopia and Nigeria, where the company has forecast that conditions will remain challenging and the consumer environment weak due to the low global oil price.
The company didn’t quantify the impact of the new year parties and early Easter in the release.
Heineken also reiterated guidance that it anticipates stronger sales and profit in 2016 despite a slowdown in some emerging markets, where the company generates nearly two-thirds of its earnings. The maker of Tiger lager has forecast gains in Asia including in Vietnam, one of its three largest markets. But it’s not alone, as Denmark’s Carlsberg A/S is also pursuing growth in Vietnam and countries like India to offset persistent declines in Russia.
Heineken is trying to keep a lid on expectations by leaving the guidance unchanged, Societe Generale’s Holland said.
20 Apr. 2016