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. Cash raining at Kerala’s liquor retailer; employees on the run with money
The employees of the state-run Beverages Corporation (Bevco), the biggest authorised retailer of Indian made foreign liquor (IMFL) in Kerala, are literally on the run with bagsful of cash pouring in at its outlets.
Each liquor outlet of the corporation has a revenue of around ₹ 15 lakhs every day, with sales peaking in the evening. The banks are supposed to collect the money from the outlets through designated agencies. But banks do not often comply with this agreement, especially during long bank holidays. The Bevco management had earlier promised to provide police security to employees who go to banks with the daily collection. But this promise remains unfulfilled. Most of the outlets in rural areas do not have good security arrangements in place.
The Bevco has accounts in five nationalised banks in the state, and when the banks remained closed for four consecutive days during Navaratri last week and six days during Onam festival season, the collection at Bevco outlets accumulated and touched crores, creating a big headache for the employees.
During festival season, the Bevco records big revenue vary from ₹10 lakhs to ₹ 53 lakhs at outlets. For example, in eight days before ‘Thiruvonam’, the national festival of Kerala this year, the corporation sold liquor worth ₹409.55 crore.
A few years back, Rs.5.34 lakhs was snatched away from a Bevco employee who was on his way to the bank with the daily collection. Even though the police arrested the culprits later, the Bevco management insisted that the employee was responsible for the loss. The corporation also served a notice to the employee last week to furnish reasons for not to impose a penalty for the loss. The notice irked the Bevco employees and prompted them to demand more security to Bevco outlets and a reliable system to collect money every day, irrespective of the holidays.
The Bevco, established in 1984 to provide good liquor at reasonable prices to consumers, has 338 IMFL shops and 22 warehouses across the state. With the state government closing down more than 700 liquor bars in the state two years back, the consumers have fewer options now to buy liquor in Kerala. The outlets of the Bevco and the Consumerfed, a state-controlled civil supplies network, have monopolised the liquor sales in Kerala, except the five star hotels.
18 Oct. 2016