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.
Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
drinktec. Closing Report
° Top decision-makers from all over the world – a full turn-out
° Around 60,000 trade visitors from 170 countries
° Proportion of international visitors rises to 55 percent
° Exhibitors: "Life is coming back into the sector"
drinktec 2009 has gathered together the top decision-makers in the international beverage and liquid food industry in Munich and in doing so has given the sector renewed impetus. "Virtually all the CEOs and Presidents from companies around the world turned out here," was the unanimous opinion of the exhibitors, all of them praising the "extremely high" quality of the visitors. Intensive talks were held at many stands, laying the foundations for upcoming investment decisions; many of the exhibitors reported they had signed up business agreements at the fair. Even though the climate as regards investment is still cautious, drinktec 2009 has marked a turnaround in decision-making.
drinktec confirmed its reputation as the world?s most important business and information platform for the sector in impressive style. It is the world 'summit' for the beverage and liquid food industry – in this, too, exhibitors and visitors alike were agreed. Volker Kronseder, Chairman of Krones AG and President of the Advisory Board of drinktec 2009, described how he saw the mood in the halls: "People are no longer paralysed with shock, life is coming back into the sector." It is a view he shares with many of his colleagues in the sector. Menno Holterman from Norit also sees light on the horizon after drinktec 2009. "There?s more appetite for investment again, so long as the ROI is right. We have signed up a number of contracts."
"Quality not quantity"
Wherever you looked in the twelve exhibition halls at the fair, the general picture was one of interested professionals from all parts of the globe, seeking out innovations, finding out about machinery and plant, and conducting intensive business talks and negotiations in the exhibitors? offices and in the VIP lounges. In all areas of the exhibition the emphasis was on cost-saving and sustainable solutions. At the stands it was clear that visitors from outside Germany were in the majority. "There was a noticeably high number of visitors from China, India, Japan and Latin America," was how Marcus Ley from Ecolab put it, for example. He summed up: "Quality not quantity" – this assessment was one often expressed by the exhibitors, when commenting on the quality of the visitors.
Proportion of international visitors rises to 55 percent
A glance at the visitor numbers confirms the picture seen in the halls. In terms of international representation, drinktec was able to expand still further, from an already high level. 33,000 trade visitors journeyed to Munich from abroad; they came from a total of 170 countries. This again significantly raised the proportion of international visitors to 55 percent. There were particularly strong rises in visitor numbers from China, India, the US, South Africa, Mexico and the United Arab Emirates, and from South America and Africa. In terms of visitors from Germany, however, the figures reflected the expected fall. Around 27,000 visitors in total came from Germany. Overall, over the six days of the fair, the trade fair attracted around 60,000 visitors.
"Melting pot of the beverage industry worldwide"
In terms of the exhibitors? assessment, the drop in the number of German exhibitors played only an insignificant role. The critical factor for them, as regards the success of their participation in the fair, was visitor quality and the fact that the visitors came from all parts of the world – this was the overriding view of the exhibitors. J?rgen Henke, Marketing Manager at the GEA Group, summed up the event as follows: "You can?t measure the success of a fair on visitor numbers alone. drinktec is the key communication platform for our sector, it is the melting pot of the beverage industry worldwide. This is where we all meet up."
Exhibition Management: "Overall very satisfied"
For Messe M?nchen GmbH, the organiser of drinktec 2009, Managing Director Norbert Bargmann, drew the following conclusion: "Overall we are very satisfied. In the run-up to drinktec we, too, had to contend with the global economic crisis. Nevertheless we have succeeded in bringing the top ranks of the beverage and liquid food industry to Munich – and that is the critical thing for the exhibitors. The high number of visitors from outside Germany, and the very broad spread of countries they represent, shows just how highly regarded drinktec is around the world. This is the place to meet up, this is the place to agree contracts and it is the place to prepare for new business. The drop we have seen in German participation is due primarily to budget cuts and the resulting limitations on business travel. Yet, from Germany, too, all the key players in the beverage and liquid food industry were represented, but no longer with the same size of team."
Top marks from the visitors
In terms of visitor satisfaction, too, drinktec was able to make further gains from an already high level. The representative survey of visitors, conducted by TNS Infratest, turned in top results across the board. Almost all the visitors (96 percent) to drinktec 2009 described the event as "excellent to good". 95 percent of the visitors gave this same top ranking to the breadth and depth of the range of exhibits. And 91 percent of the exhibitors regard drinktec as the leading trade fair for the sector.
High expectations of future economic development
The successful course of drinktec 2009 has awakened high expectations on the part of exhibitors and visitors as regards future economic development. Their optimistic statements are reflected in the results of the survey. Accordingly, 64 percent of the exhibitors and 56 percent of the visitors expect the economic situation to improve. This is considerably more positive than expectations after drinktec 2005.
Trade forums – a magnet for the trade audience
The supporting programme to drinktec was extremely well received by the trade audience. The two trade-fair forums in Halls B1 and A2 turned out to be a real magnet. Independent experts from all over the world gave lectures here on subjects covering the whole process chain, from manufacture, to filling and packaging of beverages and liquid food, as well as on issues concerned with marketing. Further highlights in the supporting programme were:
° The presentation of the 'Beverage Innovation Awards', in Oscar-style, at a gala event.
° The two-day fruit-juice congress 'International Fruit World' (IFW) on the subject of liquid fruit and fruit processing.
° The PET World Congress, held for the third time, which tackled all the relevant issues in technology and marketing.
° The presentation of the first-ever Dairy Technology Awards, for the successful implementation of innovative technology.
Success for oils+fats
Attracting 2,600 visitors (2008: 1,200 visitors) from over 90 countries (2008: 58 countries), the third oils+fats, International Trade Fair for the Production and Processing of Oils and Fats made from Renewable Resources, celebrated a great success. The number of visitors attending the event more than doubled since last year. oils+fats took place in parallel with drinktec, between 16 and 18 September.
The next drinktec takes place from 16 to 21 September 2013.
This closing report will be available in Spanish, Italian and French from Tuesday, 22 September, at: www.drinktec.com
This press release is also available at: http://www.drinktec.com/link/en/22320991#22320991
Photos of drinktec 2009 can be downloaded from: http://media.messe-muenchen.de/drinktec/Standard_e/SelectCatalog_Presse.jsp
Statements from exhibitors and visitors are collected together in Press Release no. 46 at: http://www.drinktec.com/link/en/22318779#22318779
An analysis of the exhibitor and visitor survey is contained in Press Release no. 48.
Your press contacts for drinktec 2009:
Johannes Manger and Christina Maier
Tel. (+49 89) 949-20630, Fax (+49 89) 949-20689
[email protected] / [email protected]