archive



Home page | about | current issue | price list | archive | exhibitions | responses | our staff | subscription | short comments | article search

            Archive of numbers / Archive of headings
NUMBER:  ¹1   ¹2   ¹4   ¹5   ¹6   ¹7   



¹ 6(2015)

CONTENT


DRINKS
Review of Russian Alcohol Market
Research of Information Analytical Company “VVS”

Review of Russian Cider/Perry Market
Research of the Company “Euromonitor International”

Review of Russian Soft Drinks Market
Research of Information Agency “CredInform”


TEA & COFFEE
Review of Russian Tea Market
Research of Information Agency “CredInform”


CONFECTIONERY
Review of Russian Confectionery Market
Research of the Company “ID-Marketing”


MEAT
Review of Russian Sausage Market
Research of Information Analytical Agency “INFOLine”


DAIRY PRODUCTS
Review of Russian Cheese Market
Research of the Company “Market Analitika”

Review of Russian Ice Cream Market
Research of Russian Union of Ice Cream Makers


PACKAGE
Review of Russian Market of FBB Packaging
Research of the Company “Abercade”


FOODSERVICE
Franchising in Russian Food Service
Research of the Company “RBC.research”


FINANCE & LOANS
Russian Market of Lease Service in H1 2015
Research of Rating Agency “RAEX” (“Expert RA”)


TRADE SHOWS
The 24th International “WorldFood Moscow” exhibition

Review of Russian Cider/Perry Market
Research of the Company “Euromonitor International”

During recent decade market of cider/perry demonstrated astonishing development, it turned into one of alcohol categories with the most vibrant growth in volume on global market. In 2013 volume of global market of cider/perry exceeded 2 billion liters and continued robust growth in 2014.
In 2014 top five cider/perry markets provided 76% of sales volume worldwide. On the one hand this accents relatively high consolidation of the review market, on the other hand shows potential of this category in other countries.
In 2014 sales volume of cider/perry was mainly provided by several markets, first of all, Great Britain, USA and South Africa.
On the one hand, Great Britain market of cider/perry is the largest in the world. On the other hand, however, this market is mature and recently has demonstrated only marginal growth which means the market is on plateau. Therefore, growth of global sales of cider/perry in volume are driven by other large markets, new for the category (other than Great Britain).
Since 2009 global consumption structure of cider/perry changed significantly. In 2009 Great Britain controlled almost 50% of global sales of the category, by 2014 share of this country went down to 40%. Redistribution of market shares is first of all related to higher growth rates of sales in other countries.
Consolidation of the review market in 2014 was quite limited, less than half of sales volume of cider/perry was controlled by five largest companies: “Heineken NV”, “Distell Group Ltd”, “Boston Beer Co Inc”, “C&C Group Plc” è “Kopparbergs Bryggeri AB”. However, during the forecasted period further consolidation is expected as the leading companies get stronger. Interest of the leaders of global alcohol market to vibrant segment of cider/perry is growing as they see good potential for their business in this new category.

EAST EUROPE
East European market of cider/perry is still far behind the largest markets, by the end of 2014 share of this region in global sales constituted just 3% in volume. However, this region demonstrates the highest growth rate of sales. For instance, during 2009–2014 CAGR of global sales of the review category constituted 7% in volume while same index in East Europe was 17%. The largest market in East Europe is Ukraine with 21% of sales volume in the region. Cumulative share of Baltic countries in cider/perry sales in East Europe constituted 35% in 2014, of Poland – 16%. Market of Poland and Ukraine are still emerging: popularity of cider/perry started to grow in the named countries just 5 years ago while in Baltic countries the review category is popular already for more than 10 years.
In Poland the market of cider/perry grew by more than 5 times in 2014. Despite the fact that the review category has been recently promoted in East Europe as a drink for sophisticated consumers and in Poland the start of sales was low, growth rate might seem too high. However, this situation has another explanation which is not quite obvious. Last year when Russia laid a ban on import of apples from Poland, the country faced the problem of apple oversupply and manufacturers had to search for some alternative way to use the fruits. Russian sanctions were implied to have a negative impact upon Polish market but in reality it stimulated local manufacturers to increase cider production which probably underpinned growth of cider sales.
Situation in Estonia is quite interesting: per capita consumption of cider/perry in this country is the highest in East Europe and exceeds consumption rates of Lithuania and Latvia by more than 3 times (respectively second and third lines in consumption rating). Consumer preferences for alcohol kinds in Baltic countries are very similar. Impressive consumption rate in Estonia is related to high demand for cider/perry among tourists from Finland. Finnish alcohol market is monopolistic, so Finns frequently come to Estonia and buy a lot of alcohol including cider/perry which of course has direct impact upon sales of the review category in Estonia.

RUSSIAN MARKET: FRESH GROUND
Russian market of cider/perry remains very small in comparison to other kinds of alcohol. When obligatory licensing of medovukha and cider making was introduced in 2012 this segment of alcohol market, very young at that time, almost collapsed. Market players switched to production of soft drinks and beer instead of bothering to get licenses for cider and medovukha production. Though the law on licensing existed only for several months only 10 out of 30 manufacturers of cider and medovukha did not quit the market, according to different estimations. However, increasing activity in segment of cider/perry implies that situation changes.
In the beginning of 2015 Ministry of Agriculture of Russia suggested to include cider and medovukha into the category of agricultural products. If this suggestion is approved then manufacturers of the named drinks can apply for subsidies and tax privileges, and also advertise on TV cider and medovukha made from apples/honey of Russian origin.
Another interesting fact is that in July 2014 “Pivovarennaya Kompaniya (Beer Brewing Company) “Baltika (Baltic)” LLC launched to Russian market cider under TM “Somersby” (licensed by “Carlsberg Group”). This brand is one of top ten brands of cider/perry in the world and is an indisputable leader of East European market. Coming of such a strong brand to Russia can have a positive impact on cider consumption because large budget on its marketing will certainly help to promote cider category especially if it gets the status of an agricultural product and its advertising is broadcasted on TV.

FUTURE PERFORMANCE
Global market of cider/perry is to continue its dynamic performance during the forecasted period with CAGR expected to constitute about 9%; the review category is to remain the most vibrant on alcohol market. Relatively small volume of global market of cider/perry and respective low start of sales determines impressive dynamics in the future. We should also mention the so called “artisan products” trend which already influenced positioning of cider/perry as a premium drink for sophisticated consumers.
As for cider/perry market in Russia, possible change of status of the review category and coming of East European leading brand to Russia implies that cider/perry might see impressive growth in the future.

Georgy Grebinsky
Analyst “Drinks and Tobacco”
“Euromonitor International”

worldfood
worldfood
brau
interfood
agrorus
nutrition
anufoodchina
worldfood