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201120122013201420151092411552077364522525981147355546105243595411109143765467 SOFT DRINKS BEERCAN FILLINGS FOR BEER AND SOFT DRINKS 2011-2015 (MILLIONS OF UNITS)CansRellable Non-rellable Rellable Non-rellable CansRellable Non-Rellable Non-With new legislation, high taxation and a turbulent economic situation creating a challenging environment during 2015, Russian can fillings decreased year-on-year by 4.8%.The decrease was exacerbated by a 5.9% decline in beer can volumes, as fillings fell to 4.1 billion from 4.4 billion in 2014. Much of this can be attributed to increasing excise duties and the introduction of a total ban on beer advertising in recent years, as well as a ban on beer sales in kiosks, which were traditionally the main retail outlet for packaged beers and flavoured alcoholic beverages (FABs).During 2016, new legislation is being introduced that requires all retailers making wholesale purchases of alcoholic beverages to go through the Unified State Automated Information System (USAIS), which gives state control over production and turnover of all alcohol-containing products. These new regulations did, however, already have an impact on the sales of alcoholic beverages in Russia in 2015, with many traditional retailers unable to install the system and sales therefore moving to modern trade channels, such as hypermarkets, supermarkets and minimarkets.While fillings of beer cans fell in 2015, fillings of soft drinks remained stable, despite the overall spending power of consumers falling, as households tighten their purse strings amidst the economic turbulence caused by the devaluation of the rouble. The soft drinks sector was helped by innovative launches such as Coca-Cola’s new 250ml can, which was offered at a lower, more appealing price point, and benefited from the use of variable printing technology to produce a series of limited-edition cans. Similarly, the use of innovations such as variable printing in promotions including Baltika #3’s city campaign (see case study), helped halt further declines in beer fillings across the country. RUSSIA & FORMER CISNEW CAN INNOVATIONS LIMIT DECREASES AS DRINKS CAN FILLINGS FALL IN A CHALLENGING ECONOMIC ENVIRONMENTTOTAL CAN 5.2BNFILLINGS DOWN 4.8%BEER CAN 4.1BNFILLINGS DOWN 5.9%SOFT DRINKS CAN A YEAR IN NUMBERS1.1BNFILLINGS STABLESource: Industry estimates based on consumptionMARKET SNAPSHOT• Total can fillings fall due to new legislation and increasing taxation • Ban on alcohol advertising continues to affect beer volumes• New can innovations help limit further declinesTHE SOFT DRINKS SECTOR WAS BOOSTED BY INNOVATIVE LAUNCHES SUCH AS COCA-COLA’S NEW 250ML CAN, WHICH BENEFITED FROM THE USE OF VARIABLE PRINTING TECHNOLOGY TO PRODUCE LIMITED EDITION CANSSOFT DRINKS - SHARE OF MARKET BY PACK TYPE, 2015 (VOLUME) 6% Cans 1% Refillable glass 1% Non-refillable glass 92% Non-refillable PETBEER - SHARE OF MARKET BY PACK TYPE, 2015 (VOLUME) 21% Cans 1% Refillable glass 27% Non-refillable glass 51% Non-refillable PET48 EUROPEAN CAN MARKET REPORT 2016 COUNTRY REPORTS