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.
Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Japan’s Beer Industry
To compete with bigger global rivals, however, Japanese beer makers are now looking into overseas investment opportunities and diversifying their products. Here are five numbers to know about the beer industry in Japan.
JAPAN DRINKS A LOT OF BEER
The volume sold by Japan’s five domestic beer makers totaled 2.72 million kiloliters (718.5 million gallons) in 2015, according to the Brewers Association of Japan. Beer consumption in Japan has been declining partly because of an aging population. The volume sold in 2001 was 4.89 million kiloliters.
THE COUNTRY IS IN THE TOP TEN BEER CONSUMERS
Japan was the world’s 7th largest beer consumer in 2014, the latest year for which data is available, according to Kirin. China has been the largest beer-consuming country since 2003. It’s followed by the U.S., where consumption grew 0.5% on-year.
BUT OTHER TYPES OF ALCOHOL CONSUMPTION ARE INCREASING
While beer sales have been declining in Japan, wine and whiskey drinkers have increased by 55.5% and 34.2%, respectively, in the past 10 years, according to Japan’s National Tax Agency. Japanese beer makers have tried to diversify their portfolios in recent years. Suntory acquired U.S. whiskey maker Beam in 2014 for $16 billion, while Asahi bought Tokyo-based wine seller Enoteca Co. Ltd. last year.
FIVE DOMESTIC BEER MAKERS DOMINATE JAPAN'S MARKET
Japan’s five domestic beer makers dominated 92% of the Japanese beer market in 2015, according to Euromonitor International. Asahi Group Holdings Ltd. held 35.5% of the market share, followed by Kirin Holdings Co. Ltd. at 30.3%, Suntory Holdings Ltd. at 15.3%, and Sapporo Holdings Ltd. at 10.2%. Orion Breweries Ltd., based on the southern island of Okinawa, had just 0.8% of the market.
THERE ARE ACTUALLY THREE TYPES OF BEER IN JAPAN
The Japanese beer market has 3 types of beer drinks: regular beer, “happoshu” and “new genre.” Happoshu is low-malt beer with a malt content of less than 67%. It is popular with some people because of its lighter taste and lower calorie count. It’s also cheaper due to the lower malt content. A can of Asahi’s happoshu brand costs about about 140 yen ($1.36) through online shopping, compared with a can of regular Asahi Super Dry for about 200 yen. New genre drinks, also known as “third beer,” are brewed from other crops like peas or corn to avoid Japan’s taxes on malt. A can of new genre is about 120 yen.
1 Sep. 2016