Russia Quarterly Beverage Tracker Report Q3 2013




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Product Synopsis

Published by Canadean, this Quarterly Beverage Tracker report provides a detailed analysis of the latest developments in the Russia beverage market

Introduction and Landscape

Why was the report written?

In the current climate of economic uncertainty and market volatility companies need to know about more than just data. This report provides a complete overview of all commercial beverage consumption trends, latest market developments and an economic mood indicator

What is the current market landscape and what is changing?

For Q3-13, overall SDs consumption performed flat (albeit slightly negative). Private Label in most of SDs categories performed less dynamically compared to branded drinks, despite highly competitive retail price offerings.

What are the key drivers behind recent market changes?

For Q3-13, Russian economic growth was slightly negative and the GDP increase accumulated for three quarters amounted to 1.2%, hampered by stagnation or decline within the primary industries. In-depth interviewing of SDs producers revealed a general frustration with the results of Q3, blaming poor weather conditions throughout most of the regional markets.

What makes this report unique and essential to read?

Designed for clients who want to understand the latest trends in the Russia beverage industry and want more detail and analysis on this data. Canadean's Russia Quarterly Beverage Tracker report is ideal for benchmarking total market vs retail audit data and is an essential tool for keeping up-to-date with the latest industry and market developments

Key Features and Benefits

  • Readers are provided with a summary snap shot table showing category growth in Q32013 vs Q32012, together with 2012 actual volumes, 2013 forecast volumes and projected growth
  • An economic mood indicator, completed by Canadean's local consultant, examines (on a scale of one to five) whether confidence levels in the industry are better or worse than the previous quarter, whether net prices are rising or falling and how Private Label products have performed versus the rest of the market. Selected retail pricing data is given for the most recent quarter and the previous four quarters, enabling analysis of price movements. 
  • Key highlights of the last quarter's commercial beverage performance are identified and the key market drivers examined
  • Volumes for Q32013 vs Q32012, full year 2012, moving annual totals (MAT) and 2013 forecasts are provided for each individual beverage category, together with supporting text on quarterly performance and forecast assumptions. More granular data is provided for the Carbonates category, with data split by regular vs low calorie, and by key flavours. Significant activity in the soft drinks industry is covered including recent new product introductions (detailing flavour, pack type, pack size, retail price and selected pack shots) and the latest industry news.
  • Focus on Functional Soft Drinks and Healthy Innovation

Key Market Issues

  • For Q3-13, the white milk category saw growth of just 1%, hampered by an increase in retail prices as a result of a 16% increase on raw milk costs since January 2013
  • A reduction of investment activities was aggravated by a diminished influx of foreign money and continuous exports from local capitals outside of Russia.
  • Consumers' disposable incomes also remained stunted and by September, the situation deteriorated. Many consumers reduced their spending on non-essentials goods and services and instead began to save more, cooling down previous booms in consumer crediting.
  • Average monthly temperatures for Q3-13 in Central Russia were higher than normal in July and August, but below average in September
  • Recent restrictions on the commercialization of bottled beer via small-sized grocery stores, street pavilions and kiosks, along with the stagnation of real consumer incomes and poor weather conditions, were the main influencing factors behind beer's drop

Key Highlights

  • Most local soft drinks producers hope for better sales in Q4, given that this quarter is not generally affected by weather conditions and there are no reasons to suggest that the festive period will bring anything but good results
  • Bulk/HOD water growth has been stimulated by the installation of new coolers to corporate and institutional clients, while demand for individual households were limited by the weak economy
  • Regional fruit powders demand has been sustained by the low incomes of many consumers, who are unable to afford products within the more expensive soft drinks categories
  • For Q3-13, consumption of wine increased by 5%, which was partly due to the low initial base of the previous year and partly driven by the substitution trend from beer. Imports from Georgia have also restarted, following a ban which was imposed for several years
  • The cider category has been positively affected by the restart of previously discontinued local production (which accounted for almost half a million litres) and the growing imports from Belarus