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.
Philippines. San Miguel Brewery enjoys both income and revenues growth in the first three months of this year
The group also gained from improved operating efficiencies that boosted margins for oil refining unit Petron Corp. amidst the slump in oil prices.
This net profit level of P13.5 billion for the first three months included equity attributed to minority interest.
SMC’s group-wide operating income rose by 38 percent to P22.82 billion for the first quarter from the previous year.
Beer unit San Miguel Brewery reported a 23 percent growth in first quarter net profit to P4 billion while hard liquor arm Ginebra San Miguel posted a 288 percent improvement in net profit to P54 million.
Food unit San Miguel Purefoods Co. Inc. posted a 34 percent growth in three-month net profit to P1.22 billion, driven by the performance of its feeds, poultry and branded value-added businesses.
Petron’s net profit skyrocketed to P2.76 billion from only P257 million in the previous year. SMC said Petron had “weathered the prolonged slump in oil prices as it reported better first quarter results both from its Philippines and Malaysian operations.”
Meanwhile, the packaging business posted a three-month operating income of P597 million, rising by 25 percent while the operating income of power unit SMC Global Power posted a 7 percent rise in operating income to P7.31 billion.
The infrastructure arm San Miguel Holdings posted a first-quarter operating income of P2.43 billion, up by 16 percent year-on-year.
Ongoing projects include: the NAIA Expressway which is expected to finish a significant portion by end-June this year; Skyway Stage 3, TPLEx phase 3, SLEX TR4, the Bulacan Bulk Water Project and MRT-7 which, following its groundbreaking held last April 20, will start construction soon.
Meanwhile, its Boracay Airport is scheduled to start jet operations by the second quarter of this year while construction of a new and bigger terminal is expected to commence by November.
12 May. 2016