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. Sabeco to be listed on exchange
The statement was posted on the Vietnam Association of Financial Investors (VAFI) website early this week after the ministry responded to the association's previous complaints on the delayed divestment of the State's capital from Sabeco and the delayed listing of the company.
The delayed divestment and listing of Sabeco on the stock exchange has recently raised public concerns as investors that are not Government agents own less than the required stake in the company's capital.
Under existing regulations, a joint stock company, which was shifted from a state-owned enterprise, must sell at least 20 per cent of its capital to other investors.
The ministry now holds 90 per cent of the company on behalf of the State.
During the past eight years, VAFI has repeatedly urged the ministry and the company's management board to sell all the State's holdings in Sabeco and place the company on the stock exchange to improve the quality of corporate governance, however, the situation has yet to change.
"The delay of listing Sabeco came after the ministry planned to sell its entire holdings in the company before asking for the Government's permission to put it on the stock market," the ministry said.
"The listing of Sabeco on HoSE will be reported to the Government for approval," MoIT said, adding that the delayed listing had failed to meet expectations from the company's investors.
Regarding the divestment of the State's capital from the company, the ministry said that it had proposed the Government approve the divestment of the State's capital from Sabeco four times since 2012. The Government has yet to make the final decision on the plan.
The ministry was not obliged to hand Sabeco over to SCIC because SCIC had no right to take full control of the southern beverage company in accordance with the document 651/TTg-DMDN issued by the Prime Minister on August 5, 2015.
18 Aug. 2016