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.
India. United Breweries Holdings Q4 net loss narrows to Rs 43 crore
United Breweries (Holdings) today reported narrowing of its standalone net loss at Rs 43.14 crore for the fourth quarter ended March 31, 2016.
The company had posted a net loss of Rs 373.73 crore during the same period of the previous fiscal.
However, its total incom from operations rose by 33.63 per cent to Rs 103.62 crore during the March quarter as against Rs 77.54 crore in the same period a year ago, United Breweries Holdings said in a filing to the BSE.
Shares of United Breweries Holdings were trading at Rs 29.80 per scrip on the BSE during the morning trade, up 0.34 per cent, from its previous close.
On May 24, United Breweries (Holdings) Ltd (UBHL) had sought time till July to file results for the last fiscal due to "uncertainties" resulting from ongoing cases against its Chairman Vijay Mallya.
In a letter to leading bourses, UBHL said it is being "hindered from complying with requirements" of submitting its audited standalone results for 2015-16 by May 31.
"As you may be aware, Kingfisher Airlines, a group company of UBHL, is in debt to several banks. In this regard, Vijay Mallya, Chairman of UBHL, has made a settlement offer before the Supreme Court to the consortium of banks headed by SBI," the company had said in the letter.
The settlement offer is under consideration by the consortium. A part of the substantial settlement amount to be paid to the consortium of banks is to be met by monetizing certain assets of the UBHL, it added.
1 Sep. 2016