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. ...
AB InBev Rolling Out Black Crown for 2013
With an alcohol content of 6%, Black Crown will pack more of a punch than the standard brew's 5% and is scheduled to go on sale in the United States early next year.
(See Related Content below for previous CSP Daily News coverage of Project 12).
Attention-grabbing drinks are becoming more important for global brewers such as AB InBev as they seek growth in the face of competition from craft beers, wine and spirits, said the report. Changing the attitude of consumers toward established brands and keeping them interested is proving crucial.
"Black Crown's bringing Bud to a more sophisticated crowd and occasion," AB InBev chief marketing officer Miguel Patricio told the news agency. While the main purpose of innovation is to boost sales, it is also about creating "better brand health," said the 46-year-old executive, who started in the position in July.
AB InBev, created in 2008 when InBev NV bought Anheuser-Busch Cos. for $52 billion, has spent the last four years selling assets, stripping out costs from the combined business and paying down debt, the report said. Now, with the help of new brews including Bud Light Platinum and Bud Light Lime-A-Rita, the Leuven, Belgium-based brewer is honing its focus on selling more beer.
"When we bought A-B, our focus was much more on deleveraging," said Patricio. "This is behind us. Now we're focusing on what we've been seeding" in new products.
AB InBev has been struggling to stem declines in Budweiser sales and boost Bud Light revenue in the U.S., the world's second-biggest beer market. Sales of Budweiser to U.S. retailers fell 6% by volume in the nine months through September.
About 6% of AB InBev's beer volume globally last year was the result of innovation and "renovation initiatives," Patricio said. Bud Light Platinum, a higher-strength beer in a blue bottle, and the margarita-flavored Lime-A-Rita were introduced this year and helped add about 0.75 percentage point to the brand's 21.5% share of the U.S. market in the third quarter, AB InBev estimated.
"Platinum was by far the biggest source of growth for ABI in the last three months," Trevor Stirling, an analyst at Sanford C. Bernstein, said in a Dec. 11 note cited by Bloomberg.
For AB InBev, innovation isn't just about new brews, Patricio said. It's also about packaging and marketing initiatives.
AB InBev plans to introduce a new Budweiser can with a distinctive waistline shape in the United States, and has added different sized and shaped cans globally, including a red-and-gold dragon-patterned bottle in China to celebrate Chinese New Year. New Brahma cans in Brazil enable the entire lid to be peeled off instead of just a tab, creating a ready-made beer glass.
"We're feeding this funnel of innovation constantly," Patricio said, adding that new products typically take three or four years to develop.
Renovating or designing new varieties of established drinks, such as Stella Cidre and Lime-A-Rita, is more important than creating entirely new brands, though the company isn't avoiding the latter, Patricio said.
Known for its prowess in reducing costs, AB InBev is also seeking to sell more profitable drinks, said the report. Bud Light Platinum is priced about 35% higher than Bud Light, according to Stirling.
Still, the brewer is resisting cuts to sales and marketing spending, which climbed 7.7% in the first nine months of 2012, after rising 4.1% a year earlier. Patricio declined to comment on whether spending will continue to rise.
The executive told the news agency it is easier to be agile with innovation and marketing in the digital age because of better and faster consumer feedback. AB InBev is soliciting ideas from customers through the "open innovation" section of its website and is using technological innovation around gigs and sports events to drive interaction through social-media websites such as Facebook.
"It's much easier to make consumers loyal when they experience an event" with a company, Patricio said.
That's not to say that AB InBev has perfected the process. Profit this year was hurt by higher distribution and administration costs in the United States as the brewer struggled to keep up with demand for Platinum and Lime-A-Rita, which required extensive--and expensive--countrywide distribution.
"We have to be better" at planning, Patricio said. Still,"I wish we had that problem everywhere--of having innovation be so successful."
8 Янв. 2013