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. Bihar brings in new law to ban alcohol
Today being Sunday, chief minister Kumar held a special meeting of his Cabinet to notify the new Bihar Prohibition and Excise Act, 2016 to impose total ban on sale and consumption of alcohol with immediate effect. Experts say the new law is even harsher than the previous one revoked by the court.
“The ban on alcohol will continue further in Bihar as it has brought a sort of social revolution in the state and its impact is quite visible,” the chief minister told the media after implementing the new law.
Stating that the liquor ban has brought tremendous changes on various fronts, Kumar said around Rs100 billion (Dh5.5 billion) which was being wasted on buying liquor was now being spent on constructive works. “This has improved the economic condition of the masses,” he claimed.
On Friday, the Patna High Court had struck down the state government’s order imposing total prohibition in the state, terming it as “illegal” in what many believed was a major setback to the chief minister.
The court passed the order while hearing a bunch of petitions filed by various organisations which had termed state government’s new prohibition law as “draconian” and sought for amendments.
The ruling Nitish Kumar government in Bihar had imposed total ban on sale, consumption and manufacture of liquor in April this year after a new excise and prohibition bill was passed from both houses of the Bihar state assembly.
Initially, the government had imposed total ban on county-made liquor but soon later it also put blanket ban on all kinds of liquor.
Earlier this month, Bihar Governor Ram Nath Kovind gave his assent for the new Prohibition and Excise Bill about a month after it was sent to him for approval.
3 Oct. 2016