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.
Vietnam Brewery becomes Heineken Vietnam Brewery
There are no changes to the shareholding structure between the two stakeholders in the joint venture. The Saigon Trading Group (Satra) continues to hold 40 per cent while Heineken Asia Pacific partner still holds 60 per cent.
“The new image of Heineken Vietnam Brewery will be introduced in the Asia Pacific region and no changes will be made to management and organizational structure,” said Ms. Le Minh Trang, Chairman of Heineken Vietnam Brewery and General Director of Satra.
The company will preserve its business and production models as well as the property rights on its all brands, which include Heineken, Tiger, Larue, BGI, Bivina, Desperados, Affligem and Strongbow Cider.
According to Mr. Leo Evers, Managing Director of Heineken Vietnam Brewery, products under the old brand name will continue to be distributed and their quality will remain unchanged.
With annual profit averaging around $186 million and State budget contributions $573 million, many have asked whether Heineken has its eyes on Satra’s shareholding in the joint venture, with its first step being to change the brewery’s name.
In 2012 Heineken spent $6.3 billion on purchasing Fraser and Neave’s 40 per cent holding in Asia Pacific Breweries - the maker of Tiger beer and also one of the largest brewers in Southeast Asia. According to Euromonitor figures, more than 80 per cent of Vietnam’s beer market is held by Sabeco, Heineken and Habeco.
The company now ranks second in the domestic market with output of 729 million liters in 2015, following the Saigon Beer Alcohol Beverage Corporation (Sabeco) with 1.38 billion liters, according to figures released by the Vietnam Beer Alcohol Beverage Association (VBA).
Heineken Vietnam Brewery surpassed the Hanoi Beer Alcohol and Beverage Corporation (Habeco) last year to take second spot.
Heineken Vietnam Brewery has four breweries in Vietnam, in Ho Chi Minh City, Da Nang, and Quang Nam and Tien Giang provinces.
Heneiken Asia Pacific also operates in northern Vietnam through the wholly-owned Asia Pacific Brewery Hanoi Limited Company (APB).
Heineken, the world’s third largest brewer, has recently announced Vietnam to be among its three Asian markets with potential for outstanding growth, joining Cambodia and Indonesia.
Vietnam’s beer market saw output of 1,323.7 million liters in the first five months of 2016, a year-on-year increase of 5.7 per cent. Production in May reached nearly 309 million liters, an increase of 1.9 per cent compared to May last year.
Sabeco had achieved its production 505.5 million liters this year by the end of May and Habeco’s had reached 225.7 million liters.
5 Aug. 2016