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.
Myanmar. Beer station profits slump as pumps close
Most beer stations across the country have served draught beer for many years under an FL17 licence, though officially this is prohibited by law. But last month station managers offering draught beer received letters from ward administration offices telling them to stop.
Ward administration offices are under control of the General Administration Department, which is overseen by the military through the Ministry of Home Affairs.
U Thein Than Win manages a beer station in Mingalar Taung Nyunt township, which stopped selling draught beer last month after receiving a warning.
Sales are down around 30 percent since then, he said, with customers moving to the few beer stations that have not stopped serving.
Other beer station owners that have chosen to abide by the law and close pumps also report a sharp fall in profits.
Most stations in Mingalar Taung Nyunt township with FL17 licences have stopped selling beer on tap, said U Thein Than Win.
But in other townships beer station owners report that draught beer still flows at unlicensed bars.
Bar owners with an FL17 licence that continue to sell draught beer and are caught will be punished, but as ward offices have not enforced city-wide inspections many beer stations are continuing to pour.
U Hla Win Tin, director general of the liquor and tax department under the Ministry of Home Affairs, said that the crackdown was simply an application of the Liquor Act and its regulations.
That act states the only people allowed to sell draft beer are those with the correct licence, he said.
Of the approximately 7000 bars and restaurants that sell tap beer today, only around 2500 hold an FL9 or FL10 licence specifically allowing them to sell draught beer.
Some beer station owners with only an FL17 licence are hurriedly trying to apply for an FL9, including U Tin Shwe who owns Maw Shwe Li station in Tarmwe township. He applied two weeks ago in search of a solution to avoid shutting his pump.
But the Ministry of Home Affairs has said it will not issue more licences, and following U Tin Shwe’s application he was visited by a small army of officials, including the township administrator, the ward administrator, a member of the city development committee and a high-ranking official from the township police station.
When they found out he was selling draught beer with only an FL17 licence, they told him to stop.
U Tin Shwe said it would be one thing if the new law was imposed uniformly across the ward, but other beer stations are still selling draught beer with only an FL17 licence.
He is losing customers to rival beer stations that have either not been asked to close or have not responded to official instructions. U Tin Shwe said he is considering flouting the law and selling draught beer again to avoid losing business.
As the ministry is no longer selling licences the only way to acquire an FL9 is from an existing licence holder, U Tin Shwe added.
The licences can be bought and sold, but are only valid at the address for which they were originally issued. The crackdown has pushed up the price of FL9 licences accordingly, from K40,000-K50,000 before it began, to K70,000–K80,000, U Tin Shwe said.
Swe Tha Har resturant in Magwe Region sent a petition letter to the local police department asking for permission to sell tap beer with an FL17 licence, which was rejected.
11 Aug. 2016