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.
Japanese breweries on startline of Sabeco auction
The move is part of the two companies’ plans to expand their overseas operations to counterbalance a shrinking domestic market. Kirin’s foreign business strategy focuses on Asia. In August, Kirin spent $560 million on buying a 55 per cent stake in domestic leader Myanmar Brewery from Fraser & Neave Ltd from Thailand.
Meanwhile, Asahi is seeking to broaden its market presence. It is considering purchasing beer production facilities in five Eastern European countries from the UK’s SABMiller Plc. The price tag on this deal is currently estimated at about $4.81 billion. The figure may go higher if a bidding war erupts.
Earlier in September, Bloomberg reported that a number of the world’s largest brewers from Europe to Asia are lining up for a slice of Sabeco, in a deal worth at least $1.8 billion.
Notably, Heineken, Anheuser-Busch InBev and its merger partner SABMiller Plc. all registered to bid. In addition, Singha Asia Holding Pte., Ltd. and Thai Beverage Pcl. also signed up for the race.
The divestment from Sabeco will be divided into two phases. The first phase will be implemented in 2016, offering a 53.59 per cent stake worth VND24.5 trillion ($1.09 billion) for investors, while the remaining 36 per cent, worth VND16 trillion ($717.47 million), will be issued in 2017 after Sabeco completes its listing on the stock exchange.
On September 26, the Ministry of Industry and Trade approved Sabeco’s proposal to list on the Ho Chi Minh Stock Exchange (HoSE). Sabeco will have 12 weeks from September 26 to complete its listing on HoSE.
Starting operations 130 years ago, Asahi Holding is a global beer, spirits, soft drinks, and food company. It currently has 119 subsidiaries and 83 plants dotted across Japan, Europe, China, Southeast Asia, and North America.
Kirin Holding, which was established in 1907, specialises in alcoholic and non-alcoholic beverages, pharmaceuticals, and bio-chemicals. Kirin has production facilities in Europe, Asia, and America.
26 Oct. 2016