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.
Singha Uses Beer Cashflow to Fund Diversification in Thailand Property, Foreign Assets
Singha, also known as Boon Rawd Brewery Co., Ltd., was set up in 1933 as Thailand's first brewer by Piti's great-grandfather. The closely-held family company, had a 68% share of Thailand's beer market in 2015. The company produces beer under the Singha, Leo and Singha Light brands. Singha Beer is also exported to over 50 countries around the world.
Singha's property affiliate, Singha Estate PCL, was formed in September 2014 through takeover of a listed property firm and consolidation with Singha's existing property assets, including the Santiburi Beach Resort and Spa, a five-star hotel on Koh Samui, one of Thailand's top tourist destinations.
Singha Estate is fast expanding and controls a range of commercial, residential and hotel business, including 26 hotels in the United Kingdom. Singha Estate is listed on the Stock Exchange of Thailand, or SET, under the trading symbol "S".
"We will continue to diversify and beyond Singha Estate we are preparing to spinoff another 8 or 9 other businesses," said Piti, addressing the recent 'Forbes Thailand Forum 2016: The Next Tycoons' seminar. "If we considered to be only in the beer business it would too narrow."
In the beer business, Singha will focus on maintaining profit margins, rather than market share, in order to fund diversification, Piti said.
In the past five years the number of employees of the group rose from 5,000 to around 20,000.
Piti was born in 1979, the second son of Santi Bhirom Bhakdi, the President & CEO of Singha Corp. Santi and family ranked 7th in Forbes list of Thailand's 50 Richest 2015, with a net worth of $2.9 billion.
Piti, who goes by the nickname 'Todd', attended high school as Wilbraham & Monson Academy, before studying Industrial Engineering at Worcester Polytechnic Institute, both institutions located in Massachusetts, USA.
After graduating in 2002, Piti first worked in the US at Wyman-Gordon, a components manufacturer for the aerospace and energy sectors. Piti then came back to Thailand and started moving up the echelons in the family business, successively looking after advertising then marketing at Boon Rawd Trading, before taking his current position. He is also a director at Singha Corp.
Besides beer, water and electrolyte drinks, the group has close to a hundred affiliates involved in businesses including hotel and hospitality, food such as Thai jasmine rice and snacks, packaging, restaurant chains, such as Est.33 by Singha, and fashion, under the Singha Life brand, which is now expanding into sport apparel.
Singha also supports social and community enterprise through its famed Singha Park in Chiang Rai, a province in Thailand's Northern region.
26 Apr. 2016