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.
Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Russia. Baltika expanded market share thanks to Zhigulevskoe and Carlsberg
Under Carlsberg ‘s assessments, in general the volumes of beer markets in Eastern Europe region have been shrinking at medium rates, yet they have managed to regain the volume growth of primary purchases in Russia, Kazakhstan, and Ukraine. The growth in Russia was based on stockpiles decrease at distributors’ warehouses, which resulted from market decline and switching of sales channels from the traditional to modern trading.
Positive dynamics by the end of three months of 2016 was demonstrated by brands Zhigulevskoe and Carlsberg. The specialties of the previous year Neon Beer and and low alcohol Seth&Riley’s Garage have also performed well.
In the first quarter, Baltika went on focusing on the key brands and on sport developing in order to form the culture of rooting for a team. Baltika is an old partner of KHL championship.
Region Far Abroad countries proved to be the main growth driver for export sales in the first quarter of 2016, as export to China grew 2.5 times, the business in Australia and Ivory Coast was relaunched, besides, the growth in European countries is continuing due to product range expansion and promotion on TV. The riot growth by more than five times can be observed in countries of Middle East as well as North and Central America. Besides, alcohol free portfolio is still developing in Muslim countries, thus, energetic drink Flash Up has reinforced its positions in Kirgizia and Uzbekistan, and the supplies geography of alcohol-free soda drinks Baltika 0 in three different flavors is getting wider in Middle East and Africa.
The net revenue of Carlsberg Group in region Eastern Europe in the first quarter of 2016 demonstrated an organic growth by 20% thanks to its strong price mix and the organic growth of the total volumes. The net profit went 2% down because of the currency rate impact.
Source: data of retail audit by Nielsen Russia in natural terms concerning markets Urban and Rural Russia.
12 May. 2016