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.
Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Euromonitor: Japanese Beer Manufacturers Prepare for Potential Change in the Liquor Tax
Focus on mid-priced lager
The Malt's, launched by Suntory Beer in September 2015, was the first new mid-priced lager brand by a major beer manufacturer in a long time. Targeting the younger generation, the brand appealed to consumers through its UMAMI flavour, generated by the special malt ingredient and a special fermentation process, and with the national boy band EXILE featuring in the promotional activities. The brand successfully attracted the younger generation to rank fifth in mid-priced lager in 2015, helping to drive the growth of the category in this year. Suntory, having been a leading player in premium lager but not so much in mid-priced lager, aimed to strengthen its mid-priced lager presence by introducing the modern The Malt's brand.
It is not only Suntory that is strengthening its business in mid-priced lager, but other Japanese beer manufacturers as well. Asahi Breweries, which has long led mid-priced lager with its flagship Asahi Super Dry, launched the new mid-priced lager brand The Dream in March 2016. The Dream looked to appeal through its rich and sharp texture as well as being a reduced-sugar product, featuring national rugby player Ayumu Goromaru in its promotional activities. Kirin Brewery also put a lot of resources into rejuvenating its mid-priced beer Ichiban Shibori through increasing promotional campaigns as well as introducing 47 variations of the brand customised individually to 47 prefectures across Japan.
Why are Japanese players focusing more on mid-priced lager? This is because of a potential change in the liquor tax on beer. Discussions are currently ongoing at government level about the tax scheme on beer. The government is planning to standardise the tax imposed on beer. The Japanese beer market is currently classified into three categories - "beer" (premium lager, mid-priced lager, ale and stout, according to Euromonitor International categorisation), "happoshu" and "New Genre" (both of which fall under economy lager, as classified by Euromonitor International) - with the liquor taxes currently imposed on each of the three categories being different. Taking the example of a 350ml beverage can of beer, a tax of ¥77 is imposed on "beer", ¥47 on "happoshu" and ¥28 on "New Genre", which leads to the higher price of "beer", in contrast to the lower price of "New Genre". However, under the proposed revisions a tax of ¥55 would be imposed on all types of beer. This would ultimately mean that the retail price of "beer" would be lowered, while that of "happoshu" and "New Genre" would increase, although the liquor tax is likely to be standardised in a phased manner over a period of five to seven years.
15 Jul. 2016