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.
Instead of local Sabeco beer, will Vietnamese choose beer from Thailand?
Experts have warned that more and more Thai goods will penetrate the domestic market, especially when they are backed by powerful distribution networks.
Thai Central Group has taken over Big C retail chain and joined forces with Nguyen Kim to buy Zalora, an online shopping system. A source said Thais now control 50 percent of the Vietnamese retail market.
Sources said it was highly possible that Vietnamese would also have Thai beer to drink in the future.
Sabeco has submitted to the government the plan to divest 53 percent of Sabeco’s stakes to reduce its ownership ratio from 89 percent to 36 percent.
The sources said more than 10 investors, both Vietnamese and foreign, have registered to buy Sabeco’s stakes. There are big names among Vietnamese potential investors, such as Saigon Securities Incorporated (SSI), Anh Duong Company and Duc Binh Group.
Meanwhile, Japanese Ashahi, Dutch Heineken, Thai ThaiBev and US SAB Miller are included on the list of foreign investors.
Of these, ThaiBev is believed to be the most active investor who shows strong desire to buy Sabeco’s stakes.
The information about Sabeco’s sale of 53 percent of stakes appeared in mass media first in November 2014. At that time, ThaiBev, which owns Chang beer and Oishi green tea brands, expressed its willingness to buy the lot of shares, valuing Sabeco at $2 billion.
At that moment, Sabeco held 46 percent of the domestic market share with two well-known brands – 333 and Bia Sai Gon.
In early 2015, ThaiBev once again voiced its wish to buy 40 percent of Sabeco’s stakes at $1 billion, which means total value of $2.5 billion for Sabeco. However, the deal failed as Sabeco thought the offered price was lower than its actual value.
Analysts commented that ThaiBev is attracted by the Vietnamese attractive market. With 90 million people, in the first four months of 2016, Vietnam consumed over 1 billion liters of beer, or 10 million liters a day.
If ThaiBev can acquire Sabeco, it would be able to have 40 percent of the domestic market.
The owner of ThaiBev proves to have good understanding about the Vietnamese market. He now holds 11 percent of Vinamilk through Fraser & Neave, a subsidiary, and runs 5-star hotel Melia Hanoi through TTC Land.
30 May. 2016