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. Carlsberg plant at Mysuru to be ready next year
Carlsberg India is setting up one of its largest beer manufacturing facilities in Mysuru district of Karnataka.
Under construction, it will have annual production capacity of 80 million litres and be ready next year, Michael N Jensen, managing director, Carlsberg India, told this newspaper.
The company’s presence in the southern markets is lower than its foothold in the northern part. Carlsberg is the third largest beer maker in the country, with 15.7 per cent of the market.
The UB Group's Kingfisher has 52 per cent, followed by SABMiller at 25 per cent.
Unlike other markets, Carlsberg in India had been focusing on specific cities to grow sales.
Currently the company targets 140 cities. Its presence in the northern part is backed by seven manufacturing units (including that of co-packers).
The markets in the south remain under-supplied, with a plant each in Chennai and Hyderabad.
Once operational, the Mysuru plant will help Carlsberg increase its sales and become the second largest player in the market, Jensen hopes. “We’ve been in the Indian market for over nine years and achieved the number three position within the first four years,” he said.
Annual per capita beer consumption is less than two litres a year in India, compared to 32 litres in China and 43 in Japan.
About 85 per cent of the beer sold in the country are strong, with alcohol levels between five and eight per cent.
Tuborg, a Carlsberg brand, is the second largest selling, after Kingfisher.
28 Jun. 2016