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3-2019

Russia: Positions of Brewing Companies

The review contains an analysis of interim performance of brewers in the first half of 2019. There are rather dynamic changes behind a modest industry growth. Baltika is again experiencing a stage of volumes and market share slid due to competition with AB InBev Efes. Because of the price competition and presence expansion in the modern trade company #2. has come close to the leading position. At the same time sales of Heineken Russia have continued growing which makes the premium part of the portfolio heavier. The market premiumization trend had been also confirmed by import brands. MBC and Zavod Trekhsosenskiy have been the most successful among federal market players. The market share of independent regional brewers and Ochakovo have continued falling as they are being squeezed out by the market leaders at their competitive fields.

Ukrainian beer market 2019: companies and brands

In 2019 beer production and market have been still fluctuating about zero point. However, the past season was successful for brewers judging by the sales profitability. The price mix has improved due to rapid general market premiumization, as well as its particular aspect, the growth of import beer sales. By the season end AB InBev Efes improved its positions considerably. It turned out that consumers had not forgot Efes brands that had to leave the market, but started to recover rapidly. Against the stagnating market that meant sales decline of other companies, in the first place Carlsberg Group that most of all beneficiated from Efes exiting the market. PPB turned out to be stable to branding activity of its competitor and Obolon kept the same volumes and at the moment it is the absolute leader of the economy segment. The share growth of independent producers took place thanks to leading craft breweries, that so far do not have a big market weight, but they are rapidly gaining it.

Brewing industry in Kazakhstan 2019

During the first half of 2019, the majority of Kazakh brewers made their contribution into positive dynamics. Yet it was companies of the lower division, not the two transnational leaders that raised their production and sales. The shares of draft beer and aluminum can which is rapidly squeezing glass bottle out of the market, have been growing. The price segmentation has remained stable despite the substantial rise of retail prices and fluctuations of brand market shares, while the borders between segments have become blurred. The main events in the industry have been: the announced revision of the beer excise policy, launch of BeerKhan brand in the strong beer segment, and most important – purchasing assets of Shymkentbeer by Arasan.

Nigeria. Goldberg, Kronenburg missing in market fray

Every product brand has its playing ground. If a product does not have the financial muscle to play in the big league, it has to lay low.

This is what Goldberg and 33 Lager from Sona Breweries, a Nigerian Breweries (NB) subsidiary, whose majority share is owned by Heineken, and Kronenburg, belonging to Consolidated Breweries, just did, as their products could not raise their heads above waters where beer brands like Star, from same stable of NB and Harp, from Guinness Nigeria Plc hold sway.

Philip Kotler, a marketing professor had posited that there is hierarchy in every market or product category. He posited that, “The first is the market leader, the second is the challenger, third, the follower, the fourth, the market nicher and lastly the new entrant.”

According to Kotler, “a follower or nicher should not challenge the leader.” But it’s unfortunate, in these categories, Goldberg and Kronenburg do not belong.

Kotler further said that the best these unfortunate brands can do is to take their equal or near equal in the market. And that is why these brands are taking on their equal in the market. To make matters worse, these brands do not believe in visual adverts and print, while they have low rate in radio ad, and minimal billboard displays here and there.

However, in the view of Kotler, advertising creates advantage for established brands and creates problems for new (brands), entrants, where the likes of Goldberg, Kronenburg belong. On this note, both brands cannot be said to be new in the market, but have claimed to be new as a result of their inactivity in the market.

Investigation showed that both brands prefer to remain a regional brand, afraid to confront the leaders, may be because of the big spenders’ huge advertising budget, Brand journalists interviewed noted.

A look at the campaign materials of the three brands showed that they have not been doing well in the marketing communications industry, all boiling down to lack of funds to push the brands. On the part of 33 lager, which beer drinkers thought would wrest its way back to the market, failed because of inconsistency on its part.

33 Lager, however, is more visible on the airwaves, it’s selling point being word of mouth advertisement by consumers who often refer others to the beer, extolling its lightness and crispness.

In availability, neither of the beers under comparison outperforms the other. Goldberg and Kronenburg are only available in the Western and Eastern regions respectively. 33’s presence is quantifiable, largely in Lagos where the market resides, this was occasioned by its price differentiation.

18 Апр. 2011

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