Stabilization of the Russian beer market in 2017

Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase.

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Russia Grabs More of Barley Market as Supplies Dip Elsewhere 

Smaller barley harvests from Europe to Australia are helping Russia offload its bumper crop faster than anywhere else. Russian exports of the grain used mostly for animal feed surged 60 percent so far this season, government data show. For the whole of 2017-18, the country’s sales will jump more than any other major shipper, while global exports fall to a four-year low, according to the U.S. Department of Agriculture. World output is falling, partly as dry weather hurt crops in Australia and a heat wave was followed by heavy rains in parts of the European Union, the top two exporters. With the market heading for a second consecutive shortfall, global inventories will shrink to their lowest level in more than three decades. That’s giving top producer Russia a chance to grab more of the export market after its crops benefited from ample rains.

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Beer breakthrough: consumers embrace low-alcohol beer

According to Mintel Agency, European consumers enjoy the taste of beer containing low or no alcohol as much as full-strength beer. 28% of French consumers and 27% of German consumers believe it tastes the same, and this has led to an increase in the consumption of non-alcoholic beer, with up to 33% of Spanish, 23% of German and 9% of French consumers drinking it. Low alcohol content not only has its health benefits, but it also appeals to those avoiding the negative connotations of alcohol including a loss of control and painful hangovers. Although younger generations are assumed to be heavy drinkers, many are turning to non-alcoholic beer as opposed to regular beer for these reasons.

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