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Prod&Prod»

The market of low-alcohol cocktails and ways of its promotion

The domestic market of low-alcohol products is while holding its own niche firmly. This is due to orientation on youth and to line of goods’ permanent renewal. However, to hold its field in the market, manufacturers need fresh ideas and unconventional advertising findings

The magazine “Food Promotion. Prod& Prod” has placed the article “Wider Cycle” about picture of the low-alcohol drinks’ Russian market under the heading “The Market”. The editorial notes: covered market can be divided into two sectors: beverages based on alcohol, spirits or wine, and beer mixes - beer cocktails based on malt. The beverages’ prices are comparable, but nevertheless, the producers of the second category have obvious advantages.

First and foremost, the excise rate on the beer alcoholic beverages is much lower. Secondly, the points of sales are more common, since it does not require a special license. Third, the beer mixes can be advertised through television after ten o’clock at night. As it is reported in the article, change in the requirements to technical regulations on alcohol products can undermine the positions of the market. There is a proposal to consider the low-alcohol cocktails only those cocktails which fortress does not exceed 7%. Thus, the lion’s share of the market will fall under change of the excise tax rates and distributive systems. In addition, appropriate licensing will be needed.

Another innovation can touch the volume of consumer packages. It is planning to limit their capacity to 0.33 liters that will lead to need to rebuild production capacity.

As regards the major players, there is no a pronounced leader on the domestic market of the low-alcohol products currently.

Three leading producers own about a third of total segment sales in value terms, while the share of the top ten accounts about 80% of sales of such drinks in natural manifestation.

According to the editorial, the Russian market of the low-alcohol cocktails has a pronounced seasonality: sales rise in the warm season sharply, and consumption has an impulsive character. A purchase can take place literally at any time and anywhere - in a cafe, while walking, while waiting for transport.

For today three types of packing of low-alcohol products are presented in the market: aluminum cans, glass and plastic bottles. Most of the cocktails are available in aluminum container.

According to the territorial factor, the Central region is the undisputed leader on consumption. Its share in value terms amounts about 45% of all sales in the country. Primarily this is due to the fact that this region includes Moscow and St. Petersburg. The main instruments of promotion of the low-alcohol drinks are packing types’ renewal and new tastes’ proposal. Despite the fact that currently the domestic market supplies more than fifteen hundred varieties and brands of cocktails, the supply often renews due the next original recipes constantly.

The editorial staff of the magazine “Food Promotion. Prod&Prod” urges cocktails’ manufactures to inform retail network about their specialties oftener using for this purpose specialized publications.