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.
Craft and crafty beer in China
No wonder that in the conditions of sales decline in the industry, a lot of brewing businesses including the market leaders paid attention to this sector and started producing crafty style beer.
Tsingtao Brewery’s Laoshan factory has been in craft beer production since the end of 2015. Beer Tsingtao is currently supplied to bars in 16 communities.
Zhuajiang Brewery, belonging to AB InBev by quarter invested 250 mln yuan into building of new production lines for craft beer filling in Guangxi, east Wan, Zhanjiang, Hunan. In May 2015, the company launched high-end market for the Fort Snow - Craft series including puree beer, dark beer, and red beer.
Yanjing Brewery is also investing a lot of efforts into the craft beer development.
While the major beer players are striving to develop the niche which is new for them, in the central cities (Chongqing, Beijing, Shanghai, and Tianjin) the craft brewing is thriving. In Beijing the most popular brands are minibreweries Panda, Cow Beer Hall; and in Shanghai Boxing Cat Leybold Fresh Beer, Tap House Workshop, and pub Wuhan No. 18 are most demanded. Equally high interest among the Chinese is enjoyed by Nanjing High Master, Chongqing Fung Rudder, Chengdu Harvest, and some other brands. Even Tibet and Ningxia have their a craft of their own.
Panda Craft Beer is surely an unrivaled leader in the Chinese craft beer market, with its 20 mln yuan sales revenue and the annual natural volume of 1 mln liters of beer. The brewery’s regional offices are located in more than 50 cities throughout the country, and the company is far from being complacent.
Panda Craft is striving to increase the number of outlets in big cities like Shanghai, Shenzhen and Chengdu and to woo tourists of Dali district. The craft brewing development is equally prospective both in big cities and in third-tier cities (medium-sized cities of each province). However, Chinese consumer awareness of craft beer is not clear. Few Chinese actually know what craft beer is. Besides, the local craft brewers still have to improve the branding marketing strategies in order to be able to compete with import beer like Goose Island Beer.
8 Jun. 2016