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.
Brewery giant Carlsberg sneaks into the big leagues in Vietnam’s market
Betting on Vietnam’s high beer consumption, Carlsberg Breweries has acquired almost 11 percent of the local market, which is still dominated by a state-owned brewer.
The company’s performance in Vietnam, especially in the central region, has been strong, Carlsberg Vietnam CEO Tayfun Uner said at a press conference earlier this week.
He said it is currently holding more than half of the beer market in the central provinces, with the highest growth recorded in Da Nang, from merely 1 percent in 2012 to 19.8 percent.
Carlsberg is now ranked fourth in Vietnam with a 10.8 percent market share, after Ho Chi Minh City-based Sabeco with 46 percent, Heineken-owned Vietnam Brewery Limited with 25 percent, and Hanoi-based Habeco with nearly 20 percent. Nearly 90 percent of Sabeco, the maker of the iconic Saigon brand, is owned by the state.
The Danish beer maker’s significant growth in the central region is in line with its production expansion strategy in the country.
It acquired Hue Brewery, a dominant player in the central region known for its best-selling brand Huda Hue, for more than $90 million in 2011.
Carlsberg is also currently holding a 17.23 stake in the country’s third-biggest beer firm Habeco, which is scheduled to have its listing on the secondary stock market next Friday.
As the Vietnamese government is speeding up its plan to offload assets at Habeco, Carlsberg is expected to more than double its stake in the firm.
The company has been pouring money into the country as the Vietnamese are guzzling more beer than ever.
According to the Vietnam Beer Alcohol Beverage Association, Vietnamese drinkers are expected to consume more than 4 billion liters of beer this year, up from 3.88 billion liters in 2015.
Over the past five years, Vietnam has seen a 40-percent jump in beer consumption to more than 3.8 billion liters in 2015.
Each Vietnamese person drinks on average 27.4 liters, making them the heaviest beer drinkers in Southeast Asia, the third in Asia after Japan and China, and in the world’s top 25.
24 Oct. 2016