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.
India. United Breweries down over 2% on Vijay Mallya exit talks
Mallya-led UB Group is already being probed by Sebi for suspected violation of various securities markets regulations including about disclosure and related party transactions, while a 'wilful defaulter' tag has made it difficult for the beleaguered businessman to continue on boards of listed firms.
The shares of United Breweries Ltd, where the UB Group no more has majority stake but remains a co-promoter along with global giant Heineken group, slumped 2.11% to settle at Rs 745.35 on BSE.
Intra-day, it slipped as much as 2.67% to Rs 741, as market was rife with speculation that a board meeting could be held soon where Mallya would be asked to leave.
On NSE, it fell by 2.44% to close at Rs 743.45.
Mallya, who is said to be in London while arrest warrants have been issued for him back home, is said to have attended the last board meeting of the company through video- conferencing after which some directors of the company said they have full faith in him.
This may not have gone well with the regulator and other enforcement agencies, as rules do not allow a person classified by banks as a 'wilful defaulter' under RBI norms to continue on the board of any listed company.
Surprisingly, shares of another listed company of UB Group, United Breweries (Holdings) Ltd, rose by 4.46% to Rs 22.25 on BSE, even as the company today disclosed an attachment notice issued by Enforcement Directorate and said it is seeking legal advice to take appropriate steps.
Various listed firms of the Group have in the past been found to have violated listing and disclosure regulations of Sebi, while the regulator is also probing the group for other violations including for related party transactions and alleged diversion of funds for undue benefit to the promoters.
Besides, the Sebi norms do not permit wilful defaulters to hold board positions at listed companies.
Mallya recently resigned as Chairman and Director of United Spirits, after striking a sweetheart deal with Diageo, the new contolling owner of the erstwhile flagship company of his group.
17 Jun. 2016