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. Maharashtra alcohol makers to slash output
The Aurangabad cluster happens to be a key one for alcoholic beverage makers, as are Alwar in Rajasthan and Medak in Telangana. There are 16 distilleries and breweries in the Aurangabad belt, including those of Carlsberg, SABMiller, United Breweries (UB), United Spirits Ltd (USL), and Radico Khaitan.
While Carlsberg, USL, and Radico Khaitan were not available for comments, a spokesperson for SABMiller India said, "We are following all directions laid down by the authorities to manage the situation. In Aurangabad, as in our other operations, we are adopting innovative technologies and implementing best practices to reduce, re-use and recycle the water.” An email to UB got no response till the time of going to press.
Sector sources say a production cut is imminent, as it takes five litres of water to produce a litre of beer. A 60 per cent cut, they say, will cripple production, especially during the peak summer season when capacities normally run full steam. Typically, beer makers derive a third of annual sales during summer.
The Indian beer market in terms of volume sales is estimated to be 284-285 million cases. One case consists of 12 bottles of 650 ml each. UB, SABMiller, and Carlsberg are the top three in India, with an estimated market share of 52 per cent, 27 per cent, and 15 per cent, respectively.
Alcohol and beverage makers privately say they are soft targets, owing to the negative perception of the business. "There are other heavy users of industrial water but I don't think the attention is on them to the extent it is on us," said a senior official of a top beer company. Some of the other heavy users of industrial water in India include thermal power plants, cement, iron and steel units, bottled water and soft drinks, and apparel.
While some breweries are believed to be sourcing water from tankers for now, this is unlikely to be sustainable for long.
28 Apr. 2016