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.
Japan. Kirin to buy stake in Brooklyn Brewery for craft beer growth
Kirin and Brooklyn Brewery will form a joint venture in January 2017 to roll out the Brooklyn brand in Japan, with plans to expand to Brazil, the companies said. Privately-held Brooklyn Brewery will issue new shares to Kirin Brewery Co., giving the Japanese company a stake of about 25 percent. They didn't disclose the value of the deal.
Kirin and other Japanese breweries have been experimenting with specialty brews as craft beer gains popularity in Japan. It's one of the few bright spots for the beer industry in Japan, where a declining population has seen consumption slump since 2001. Kirin is competing against some of the world's largest breweries to expand overseas, including a possible stake in Vietnam's top brewer.
"The current beer market is in a transition period," Takayuki Fuse, president of Kirin Brewery, said in a briefing in Tokyo on Wednesday. "We need to vitalize the market, need to make it attractive, or there's no future."
Kirin fell 1 percent to 1,684.5 yen by the close of trading in Tokyo on Wednesday, in line with the benchmark Topix. The shares have gained 2.3 percent so far this year, against the index's 13 percent drop.
Brooklyn Brewery, co-founded by Steve Hindy, a former war correspondent, and a banker, will remain an independent company with its management intact, according to a Kirin statement.
Brooklyn Brewery, based in the New York borough whose name it bears, is the 12th-largest craft lager maker based on 2015 beer sales volume, according to the Brewers Association. Craft breweries produced 24.5 million barrels of beer last year and posted $22.3 billion in retail sales, a 16 percent increase from a year earlier, according to the group.
"Brooklyn Brewery is a strong brewer in the U.S. and Kirin is a company that has cash to spend," Tony Bucalo, an analyst at HSBC, said by phone. "American craft is one of the hottest categories in beverage alcohol and Kirin's buying into a successful and well-managed partner on the ground."
Kirin and Brooklyn Brewery are considering developing original products for the Japan market and starting a restaurant business. They also plan to expand the Brooklyn Brewery brand in Brazil, with details of the business and its roll-out still being discussed, according to Kirin's statement.
The Brooklyn deal would follow Kirin's purchase of a 33 percent stake in Japanese craft label Yo-Ho Brewing Co. in 2014. To draw patrons of specialty beers, Kirin opened two brewpubs last year where beer is brewed on site.
Other major Japanese brewers including Asahi Group Holdings Ltd., Suntory Holdings Ltd. and Sapporo Holdings Ltd. have also sought to jump on the craft beer bandwagon amid their rising popularity in Japan and worldwide. Asahi sees potential to boost sales of its Super Dry beer in U.S.
13 Oct. 2016