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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.

‘Good bad’ move by A-B InBev

As many of you will have gathered, I have an affection for nonsense marketing terms. I have regaled you with some favourites, but there were two I failed to mention. They include the new ‘cold hot’ soft drinks category (ice tea and iced coffee, obviously…) and ‘premium standard’ lager.

The latter, which refers to premium brands at standard ABVs, came up again this week. Budweiser is rolling out on draught, but the draught version will be 4.3% ABV instead of a premium 5% ABV.

Owner Anheuser-Busch InBev (A-B InBev) has done well out of the standard premium sector. It should have done too, as it pretty much invented it with Beck’s Vier in 2006 and Stella Artois 4% in 2008.

With Budweiser draught, the brewer is targeting young-ish blokes going out to watch sport and drink beer — hence the need for a sensible alcohol level.

Brands like Foster’s and Carling already jostle for space in this market, but are ‘standard’ brands, lacking the image, and often higher price, of beers like Beck’s Vier and Stella Artois 4%. Brands A-B InBev already owns.

The Budweiser move seems to make sense for the Budweiser brand then, but little for the brewer. Surely it can only grow draught Bud at the expense of its other brands in the sector?

Sounds like something marketers would call a ‘good bad’ move.

6 Июл. 2011

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