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.
Feed barley potential rises on the back of demand for malt barley in China
But some hope it may also open the door for increased exports of lower quality feed grade barley.
China is the world's largest consumer of food and beverages and is one of the fastest growing food and beverage markets in Asia.
According to global market research group Euromonitor International, Chinese expenditure on food and beverage products in 2016 is expected to reach US$976 billion.
Sales of mid-range and premium beers are growing, which groups like the Australian Export Grains Innovation Centre (AEGIC) hope will translate to more exports of Australian barley to China.
Australia is a dominant player in world barley export markets, representing more than 40 per cent of the world's malting barley trade and 20 per cent of the feed barley trade.
China and Australia 'mutually dependent' barley markets
AEGIC chief executive officer Richard Simonaitis recently returned from conducting workshops in China with Chinese brewing and malting companies.
He said the workshops were intended to help Chinese brewers and malt processors understand the technical potential and value of the varieties, which included La Trobe, Flinders and Spartacus.
"Providing this type of in-market support is crucial to ensure Australian grain is well understood and valued by our major customers," he said.
More than half of the malting grade barley grown in Australia currently goes to China.
"It takes about 30 per cent of the Australian crop, which is the biggest export destination for barley coming out of Australia by a long streak," Mr Simonaitis said.
"It's really quite a strong market for it, we're mutually dependent on each other really. China needs Australia's malt barley, just as much Australia needs that market."
But a spin off of AEGIC and other organisations building relations with China around malt barley could be increased demand for Australia's lower quality feed barley.
"There was a lot of enquiry about feed barley," Mr Simonaitis said.
"There's a very strong feed industry in China: they use a lot of corn, they use a lot of soybean meal, they use a lot of sorghum.
"They're just starting to understand that feed barley can help buffer some of the mildly toxic effects that badly stored grain can have," he said.
"It's a calming additive if you like to go into the feed rations, which helps take away some of the impacts of poorly stored grain coming out of China.
"It certainly sounds like there is a good understanding of the value of Australian feed grain and of course feed barley is the one that we have a readily available supply of."
18 Jul. 2016