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.
$1 billion milestone within reach for Vietnamese businesses
In the week from October 31 to November 4, while more than 50 percent of shares saw prices decreasing, Habeco’s price still increased sharply by 180 percent from VND39,000 per share to VND109,500, according to ndh.vn.
Analysts believe that its capitalization value would continue increasing in the time to come as investors put high hopes on the state’s plan to divest Habeco shares.
The addition of Habeco on the list of businesses with capitalization value of over $1 billion has raised the number of businesses to 13, a record high in the last 16 years.
The list may become longer as key enterprises in the national economy, including Sabeco (brewer), the Airports Corporation of Vietnam (ACV) and the nation’s flag air carrier, will list shares on the bourse as per the government’s request.
The majority of businesses on the list are those in which the state holds the controlling stake. However, the number of privately-run enterprises is on the rise. These include well-known names such as Vingroup, Masan Group, Hoa Phat, The Gioi Di Dong and Faros.
Of these, Vingroup, which invests money in many different business fields, including real estate, retail and agriculture production, belongs to Pham Nhat Vuong, the first Vietnamese dollar billionaire recognized by Forbes.
Novaland, a well-known name in the real estate sector, is believed to join the group of $1 billion businesses in the time to come.
The number of Vietnamese businesses which have turnover, assets and stockholder equity of over $1 billion is also on the rise. However, only three large corporations can have profit of over $1 billion. They are PetroVietnam (oil & gas), Viettel and Samsung Electronics Vietnam.
According to CafeF, about 50 enterprises in Vietnam have turnover of over $1 billion, including state-owned, privately-run and foreign invested.
Among privately-run enterprises, there are about 10 enterprises that have more than $1 billion in turnover, namely FPT (technology firm), Vingroup, Truong Hai –Thaco (automobile), The Gioi Di Dong (phone distribution chain), Masan Group, Intimex, Hoa Phat, Doji (jewelry) and SCB (banking).
11 Nov. 2016