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’s health ministry wants to ban late-night sales of alcohol
Health officials fret as the country is one of the biggest consumers of beer and liquor.
The Ministry of Health is considering a ban on sales of liquor and beer after either 10:00 p.m. or midnight as officials aim to reduce negative impacts of drinking.
Nguyen Huy Quang, director of the ministry’s Department of Legal Affairs, told a seminar in Hanoi on Monday that the ban is part of a new bill on alcohol consumption that is being drafted.
The proposal is based on similar bans already in place in several countries, which the official said have proved effective in curbing the impacts of drinking.
The bill is expected to be put before legislators in 2018.
Vietnam is currently the second biggest consumer of beer and liquor in Southeast Asia, only after Thailand; the 10th largest in Asia; and the 29th largest in the world, Vice Minister of Health Nguyen Thanh Long said.
“If prevention measures are not applied effectively, Vietnam may become the biggest consumer of beer and liquor in the world, not just the 29th,” Long said.
A new study jointly conducted by the ministry and the World Health Organization (WHO) shows that 77 percent of Vietnamese men drink liquor and beer, nearly half of them drink at hazardous levels.
Nguyen Phuong Nam, an official from WHO, said at Monday's seminar that nearly 67 percent of the total 1,840 traffic accident patients in the study had high concentration of alcohol in blood and 45 percent of them drove after two hours of drinking.
“Is Vietnam a start-up nation or drunken one?” he asked.
According to the Vietnam Beverage Association, local drinkers consumed a total of 3.4 billion liters of beer last year, up 10 percent year-on-year but surging around 40 percent from 2010.
On average, each Vietnamese person drank 38 liters of beer in 2015, more than four times higher than the global average.
The Ministry of Health said that half of drinkers drive after two hours of drinking. The Traffic Safety Committee also said that 40 percent of road-related fatalities, or some 4,000 deaths, were linked to drunk driving in 2015.
Drinking alcohol, including beer and liquor, increases the risk of developing cancers of the mouth, upper throat, voice-box, bowels, liver and breasts, health experts say.
Meanwhile, Vietnam still aims to produce 4.1 billion liters of beer in 2020, up from 3.4 billion liters in 2015, according to a plan for beer, liquor and beverage production until 2025.
Beer output will be raised to 4.6 billion liters in 2025 and 5.5 billion in 2035, according to the plan that has been made public recently by the Ministry of Industry and Trade. Liquor output is expected to increase to 350 million liters through 2020-2035.
28 Sep. 2016