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.
Carlsberg Sales Fall Flat as Brewer Cautions on Russia, Asia
Beer volumes fell 2 percent, missing analysts’ estimates, as declines in Asia and western Europe offset a temporary rebound in its troubled Russian unit, the world’s fourth-largest brewer said in a statement Wednesday. Carlsberg maintained its full-year profit forecast but that wasn’t enough to buoy the shares, which declined as much as 3.5 percent in Copenhagen, the most in almost three months.
The company’s 20 percent growth rate in eastern Europe is unsustainable,” as it was boosted by an easy comparison with the same period a year ago, Chief Executive Officer Cees ’t Hart said on a call with reporters. “The CEO’s comments about the current Russian pricing environment were quite cautious,” Eddy Hargreaves, an analyst at Canaccord Genuity, said by e-mail.
Revenue growth in eastern Europe was double what analysts estimated, as volume rebounded in Russia after Carlsberg lowered the price of its namesake lager. The beermaker also continued a cost-cutting drive by announcing a shift of 300 back-office jobs to India. The quantity of beer sold in Asia, which Carlsberg has touted as a profit driver, could decelerate, Christopher Warmoth, the company’s new head of strategy and a former regional director for Asia, said in an interview.
Twelve out of 15 divisions are spending less than their target budget, the company said, with further brewery closures planned in China. Beer volumes declined 1 percent in Asia, hurt by a decelerating market.
The shares fell 3.2 percent to 617.5 kroner at 11:46 a.m. in the Danish capital, trimming their gain this year to 0.9 percent.
Sales in western Europe, which accounts for two-thirds of the company’s revenue, declined by 3 percent after retailers including British supermarket chain Tesco Plc delisted Carlsberg products. That missed the analyst estimate of a 2.6 percent drop.
The company sees a negative foreign-exchange impact of 550 million kroner ($84 million) this year compared with a previous expectation of 600 million kroner. Net revenue rose 2 percent on an adjusted basis to 13 billion kroner.
12 May. 2016