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. Debate rages over Sabeco nepotism accusations
The Vietnam Association of Financial Investors (VAFI) previously sent a letter to the Ministry of Industry and Trade, urging the ministry to inspect the appointment of Hoang’s son, Vu Quang Hai, as deputy CEO of Sabeco in early 2015. Before the promotion Hai was the general director of PetroVietnam Finance Investment JSC. Between 2011 and 2012, under Hai’s management, the company racked-up losses of VND220 billion (USD10 million) compared to registered capital of USD13.5 million.
Nguyen Hoang Hai, deputy head of VAFI said they decided to file complaints with the Ministry of Planning and Investment and the Government Inspectorate.
Cung said he had seen the written response from MoIT to VAFI on newspaper which said that even though there might have been mistakes during the process, the promotions at Sabeco and PetroVietnam had followed all procedures and there were no legal grounds to hold Hai responsible for causing losses at PetroVietnam.
Cung said the ministry was trying to cover up evident problems in the process. "When I read the response, I can only say that it's shameless. I have nothing to say," he said.
According to Cung, Sabeco have been equitised so the ministry could only nominate people onto the board of directors, the board would then have to vote on other positions such as directors or vice directors. It was a violation if Sabeco 'begged' the ministry to promote someone as deputy CEO.
Secondly, he said that even though the private-sector investors only had a 20% stake, it's was still their money and they should have a voice in the company.
"This is not a government office, the employees don’t have to be state officials," he said. "It's wrong to use the excuse that Sabeco wanted Hai to be their deputy CEO. You must choose the best candidates with clear criteria and do it transparently."
Cung had previously also vocally criticised Sabeco when it claimed the promotion followed all procedures.
"Stop talking about following procedures. Procedures are a tool, not a goal. Procedures are only used to find the best leaders or employees, but if we can't find the best ones then we must re-check the procedures. Hai should resign from Sabeco. It's simply a matter of self-respect," he said.
26 Aug. 2016