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. Kerala is turning into a beer-guzzling state
Liquor sales dipped slightly, by 3%, in the same period though the state had clamped down the sale of alcohol in 418 bars following the implementation of the new alcohol policy.
Data accessed by TOI under RTI Act from Kerala State Beverages Corporation limited (Bevco) showed that the ban failed to curb alcohol consumption in Kerala.Moreover, the policy has spurred the sale of beer, which is not a healthy drinking option because the beer that is being consumed by tipplers have a higher alcohol percentage.
Bar owners say that consumers are more inclined towards buying `strong beer' as a compensatory shift from hard liquor and a few others even try out a cocktail of wine and beer to get their required dose of intoxication.
"The beer consumption has witnessed a 60% increase this year," said Bevco MD H Venkatesh after analysing sales.
Overall, there has been an increase of 23.82% in the total sales revenue (including taxes) of alcohol from 2013-14 to 2015-16. The total revenue collected increased from Rs 9,350.27 crore to Rs 11,577.64 crore.
The revenue procured from beer sales has increased by 55.39% from Rs 512.2 crore in 2013-14 to Rs 795.94 crore in 2015-16 whereas the revenue procured from the sale of IMFL has remained more or less the same at Rs 3,947.88 crore in 2013-4 and Rs 3,966.74 crore in 2015-16. Also, the closure of bars has become a boon for Bevco and other alcohol outlets.
But, Consumerfed MD M Ramanunny , gave another view. "The alcohol price and taxes were hiked following prohibition, therefore the revenue alone cannot be the parameter to measure consumption," he said.
The sale tax revenue from beer sales increased by 126.03% from 285.93 crore in 2013 -14 to Rs 646.50 crore in 2015-16. The revenue from the sale value (i.e. excluding sale tax) of beer in April increased from Rs 55.78 crore in 2014 to Rs 99.44 crore in 2016, a 78.21% rise. The sales tax revenue rose by 160.82%, from Rs 30.96 crore in 2014 to Rs 80.75 crore in 2016.
"The wholesale cost has remained more or less the same for the past three years, even if there was an increase, we were directed by authorities to maintain our previous rates," said an alcohol distributor who reported a quantitative increase in the consumption of his product within the state.
7 Nov. 2016