Survey on Beer Prices
In the end of February 2008 specialists of the Novosibirskprodmash Company, a leading Russian manufacturer of beverage bottling equipment, were monitoring prices for draught and packaged beer in 48 retail outlets in Novosibirsk city, Russia.
The monitoring was aimed at analytical comparing of prices for draught and packaged beer in the region, making a portrait of an average draught beer consumer, and finding out an average sales volume of draught beer in retail outlets.
The choice of the region surveyed refers to the fact that Novosibirsk is the third largest city in Russia and is characterized with high level of beer consumption, especially consumption of keg beer bought in retail outlets for take away.
This way of selling draught beer from kegs is not widespread in the rest of the world. One of the reasons is the lack of proper dispensing equipment. Five years ago the Novosibirskprodmash Company launched onto the Russian beer market its innovative product, the PEGAS device, which is designed to solve the problem of dispensing draught beer from kegs. This resulted in the creation of numerous retail outlets selling draught beer from kegs for take - away. Initially the company actively promoted the device on the Novosibirsk market. Today, with the device launched five years ago, this market is well developed and optimal for such market researches.
The monitoring results showed the following situation on the Novosibirsk beer market:
· The average profit share in the retail price for packaged beer is 30,27%, on draught beer – 47,3%
· The average number of PEGAS devices installed in retail outlets by types
Kiosk: 7.4 pcs.
Store specialized in draught beer sales: 16.5 pcs.
Specialized supermarket department: 8.2 pcs.
Roadside cafe: 8.2 pcs.
· The average volume of draught beer sales per day in one retail outlet makes 500-600 liters (15000-18000 liters per month)
This monitoring was also aimed at making a portrait of an average consumer who buys draught beer in retail outlets for take-away.
As for male - female ration among draught beer consumers buying it in retail outlets for take-away, it is 70% and 30% correspondently. A typical draught beer consumer has been found to be a man aged 30 and over with an average and above average income who has stable taste preferences.
He buys draught beer in a retail outlet to enjoy fresh high quality beer at home in a comfortable ambience. Young people mostly buy draught beer for holidays since it is more convenient to buy more beer in light plastic packages rather that carry it in glass bottles or cans.
The results of consumers’ questioning have shown that draught beer is preferred not due to a lower price (the price is higher compared to packaged beer, as mentioned above), but due to its higher quality which means that consumers buy really fresh, non-pasteurized and tasty beer.
Thus to sum up the research results it has been concluded that it is more profitable for beer wholesalers to sell draught beer from kegs than packaged beer. It is true even if taking into account wages and expenses for consumables. And if the beer producers themselves start to open retail outlets for selling draught beer from kegs for take-away, it will be a perfect solution to expand their business and increase profits.
PEGAS is a registered trademark of Novosibirskprodmash.
