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.
Kirin to bring Brooklyn craft beer to Japan
In Japan, the two companies plan to set up a joint venture next January, with the Kirin Holdings unit expected to take a majority stake. The U.S. company's signature Brooklyn Lager, known for its rich flavor, will be produced at Kirin factories -- in cans, bottles and kegs for eateries -- and be sold exclusively by Kirin through high-end supermarkets and liquor stores as well as restaurants and bars. A bottle will likely cost around 400 yen to 500 yen ($3.90 to $4.90).
Even as the overall beer market keeps shrinking in Japan, demand is growing for craft beer, which puts an emphasis on flavor and brewing method. Kirin will become the first major Japanese beer company to make foreign craft beer.
Established in 1988, Brooklyn Brewery ranks 12th among U.S. craft beer makers by production volume but comes in second by export volume. Approximately half of its production is exported. Garrett Oliver, the brewery's "brewmaster," is an iconic figure in the craft beer industry.
In the U.S., craft beer has grown to hold nearly 20% of the beer market as Budweiser and other major brands have fallen out of favor among consumers.
As part of efforts to reduce dependence on big brands, Kirin has already partnered with Yo-Ho Brewing, the largest craft beer maker in Japan.
The Japanese market for beer products has contracted for 11 years in a row. But the craft beer market, now about 40,000 kiloliters, is projected to grow to 150,000kl in 2021. The Kirin group aims to boost its share of the booming market to 50% by then from roughly 25% now.
14 Sep. 2016