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. Habeco sees revenue fall despite Obama visit
Analysts then predicted that the move by the most powerful man in the world would help Habeco beer sell like hotcakes. But the company has unexpectedly reported decreased revenue in the first six months of the year.
The audited financial report showed that revenue from sales and services in the first half of the year was VND4.049 trillion, a decrease of VND610 billion, or 13 percent, compared with the same period last year.
Habeco’s revenue still fell considerably despite branding campaigns. The brewery reportedly allocated avbig budget for sales and advertisements.
In the first six months of the year, it spent VND110 billion on ads and promotion campaigns, an increase of VND32.6 billion, or 42 percent, compared with the same period of last year. The spending was the main reason behind Habeco’s higher sales cost, about VND464 billion.
The higher sales cost and lower sales have led to Habeco’s profit decrease. Its post-tax profit in the first six months of the year was VND320 billion, down by VND220 billion, or 41 percent compared with 2015’s first six months.
The corporate management cost increased from VND182 billion to VND226 billion.
Financial experts, after analyzing Habeco’s financial report, have pointed out a problem that even though Habeco’s has big amounts of cash, it still had to borrow money from banks.
The company’s total debts reached VND1.24 trillion by the end of the first half of the year, accounting for 53.5 percent of stockholder equity.
Habeco’s biggest creditor is VIB Bank which lent VND356.6 billion. The other lenders include Vietcombank (VND244 billion) and Standard Chartered VND179 billion.
With the loans, Habeco had to pay VND37 billion in interest in the first half of the year.
The State Audit has released a decision forcing Habeco to pay tax arrears of VND920 billion in luxury tax.
Habeco has sent a petition to the Ministry of Industry and Trade, saying that the decision is unreasonable.
After Obama had dinner at Huong Lien bun cha Shop and drank Bia Ha Noi on May 23, the first day of his visit to Vietnam, both brands appeared many times on mass media. Bia Ha Noi was even mentioned in Obama’s speech the next morning.
16 Sep. 2016