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.
C&C Group announces distribution partnership with Vandergeeten in China
Irish firm C&C Group and Vandergeeten have signed a three year distribution agreement for the Tennent’s brand portfolio in the world’s biggest global beer market.
Joris Brams, Managing Director of C&C Group’s International Division, said the company saw the deal as part of a long-term growth plan for the Tennent’s brand.
“This is a fantastic opportunity for C&C Group to work in partnership with a well-established company in China with a very strong reputation in the drinks business,” he said.
Initially Vandergeeten will launch Tennent’s 1885 Lager, Tennent’s Stout, Tennent’s Whisky Oak Aged Beer, Tennent’s Scotch Ale and Tennent’s Extra into both the on premise and off premise channels nationally in China.
The deal is the fourth such partnership C&C Group has signed for Tennent’s in recent months. Last week it revealed Scotland’s top selling beer brand would be brewed in India in a deal with Mahou San Miguel.
Vandergeeten began importing from Belgium and Western Europe in 1994 and now has more than 90 brands in its portfolio, making it one of the most active distributors of specialty beer in China.
Yu Xiaoning, chief executive officer of Vandergeeten, said: “Working with C&C is an exciting opportunity for us to even further diversify our wide range of premium European beers. We’re confident that in cooperation with C&C, we can develop Tennent’s into a popular and successful brand enjoyed by customers all throughout the country.”
To achieve nationwide distribution for its range, Vandergeeten said it had offices in Beijing, Shanghai, Guangzhou and Shenzhen, as well as regional representatives and sub-distributors covering all of China.
C&C’s strategy for growing the Tennent’s brand internationally comes as global alcohol consumption fell for the first time this century. Euromonitor International recently reported that alcohol in China declined by 3.5 per cent because of a heavily-reported clampdown on extravagance.
However, imported beer into China continues to grow, said Mr Brams. “The market for imported premium beers in China has enjoyed stellar growth over the last five years and this partnership with Vandergeeten will ensure that the Tennent’s brand portfolio is well positioned for long term growth in China.”
C&C Group recently reported overall group operating profits down 10.3 per cent to €103.2m for year ending February 29 2016. It posted revenue of €662.6m.
Encouragingly though, the group saw volume growth in the potentially lucrative Asian market rocket by 66 per cent. Currently, just ten per cent of Tennent’s is sold outside of the Scottish market.
C&C Group chief executive Stephen Glancey said that although the export market for Scottish alcohol was dominated by whisky, there was increased demand for Scottish beer brands.
“The desire for authentic high quality Scottish brands travels across the alcohol space and we are seeing increased potential for the Tennent’s brand in new markets. Tennent’s has a good franchise because of the red ‘T’ and it’s been around historically, and Scotland is well respected for its food and drink,” he said.
25 May. 2016