Russia: Positions of Brewing CompaniesThe 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 brandsIn 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 2019During 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.
The trend of complication of Russian beer market is going on and in several directions at the same time. The range has got wider, the import and small segments are growing, namely craft beer, alcohol-free beer and special flavor beer. At the same time, all ex-mega brands and light lagers by Russian brewers are experiencing a decline of their shares. AB InBev Efes, Heineken, MBC and Pivzavod Trekhsosenskiy have exceeded the market, Carlsberg was developing slower than the market and Ochakovo as well as some other mid-sized breweries have been cutting down their volumes. To a big extent brewers’ performance was connected to their ability to reach agreement with networks, sacrifice their margin and enter new markets. Craft brewers are facing a serious danger of producers’ registration introduction – de facto licensing. ...
The global outlooks of the legal market of cannabis are excellent. It is possible to simultaneously imagine dry law repeal and craft brewing boom but not in one but in several consumer categories. For alcohol is contained in liquids and cannabis derivatives can be in three physical forms.The value of legal market of cannabis and its products can reach 10% of the world beer market in five years, and in 2030-2040 even reach the same scope provided the current rates of legalization and development of market infrastructure remain at the same level. Cannabinoids are actively integrating into the food industry from chewing gum to beverages deforming the pharmaceutical and alcohol markets, they influence the trends of healthy lifestyle and beauty. ...
Rihanna to Help Sell Budweiser to Brazil as AB Inbev Aims for Margin Boost
Budweiser, which was introduced in Brazil on Aug. 31, will be promoted at the venues with displays featuring the brand’s bow-tie shaped emblem, and advertised with the slogan “Great Times Are Coming,” Chris Burggraeve, AB InBev’s chief marketing officer, said in an interview in New York. He declined to comment on the amount spent introducing the brand.
AB InBev is aiming to increase its dominance in a country where it already controls about 70 percent of the market with the cheaper Skol and Brahma brands. So-called premium beers represent only 5 percent of the Brazilian market, according to AB InBev, compared with an average of 13 percent globally. Budweiser will appeal to consumers who are prepared to pay more to try beers from different countries, Burggraeve said.
“Many Brazilians have never been abroad,” he said. “We’re bringing abroad to them. They’re hungry for the world.”
AB InBev will also promote Budweiser through sponsorship of music events including concerts by singer Rihanna, and will work with so-called “Buddies,” well-known Brazilians, to help raise awareness of the brand, according to Burggraeve.
Budweiser is priced about 15 percent higher than Skol and Brahma and may appeal to drinkers who have higher disposable incomes as the local economy grows. Brazil’s gross domestic product is forecast to expand 3.8 percent in 2012 compared with 2.2 percent in the U.S., according to Bloomberg data.
Burggraeve said there’s “no crisis” in the country, where AB InBev sold 2.6 percent less beer in the second quarter because of weaker growth in disposable incomes and the strength of a comparable period that included the soccer World Cup.
Planned minimum wage increases will lead to faster growth in consumer confidence, while the 2014 World Cup, which is being played in Brazil and will count Budweiser among its sponsors, should provide a further boost to the economy, he said.
A booming population and relatively low consumption rates may also spur beer sales in the Latin American country. The quantity of beer consumed in Brazil was about 65 liters per unit of population in 2010, AB InBev said, citing data from research company Plato Logic, compared with about 146 liters in the Czech Republic, the highest beer consumption in the world.
Growth in more-profitable premium beers won’t come at the expense of brands such as Skol and Brahma, said Burggraeve, though he expects Skol drinkers in particular -- and customers of its competitors -- to “trade up” and try Budweiser.
“The premium market is one that we can, and will, shape,” he said, declining to comment on the company’s targets for volume growth or market share growth.
AB InBev, which will open a new brewery in Pernambuco, northeast Brazil, in the fourth quarter of this year, plans to spend about $3.1 billion this year on expansion in “key growth markets” including Brazil and China, the company said in August. It started selling Budweiser in Russia last year, and the brand now has about 1 percent of the local market.
AB InBev aims to make Budweiser the “first and only true global beer brand,” Burggraeve said.
23 Сен. 2011