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.
China. Zhujiang investing 1.8 bln yuan into constructing entertainment complex at old brewery location
The floor space of all plants of Pearl river company is 243000 square meters, of which 174000 m2 has been bought by the Chinese government. As a result there is 69000 m2 of land left, which can be used by the company.
Environmental impact assessment shows that these 69000 m2 will be allocated for recreation, shows, and other kinds of entertainment.
The main construction will include:
- Beer Experience Center (beer museum, beer exhibition)
- Headquarters of company Pearl river
- Design and art area
- Company stores of international beer brands.
- Art galleries
The brewery will be transformed into Beer Experience Center.
The former workshop of original packages will be changed into shops which can contain conferences and exhibitions. The malthouse will have a new life of a 10-storied hotel in beer culture style.
The original brewery will be transformed into Beer Experience Center. In accordance to the project, Beer Experience Center of 2660 m2 will become a big exhibition hall on the basis of the old brewery architecture. The exhibition will demonstrate processes of saccharification, fermentation and other production stages. These objects are not used in production, but the exhibition center, photos and video can give visitors an idea on beer production.
The entertainment center is expected to become a new tourist attraction.
Established in 1985, Guangzhou Zhujiang Brewery Group Co., Ltd. is a large state-owned enterprise which mainly deals in beer and its relative products. In 2002, InBev purchased 25% of shares in the state-owned brewery.
14 Jul. 2016