Ukraine. The beer market is falling, but sales of some companies continue to grow

Post published:02/03/2016
Reading time:2 min(s) read

In the last few years, the brewing industry in Ukraine is in a difficult situation. According to Evgeny Shevchenko, the CEO of Carlsberg, on the whole, in 2015 the production of beer in Ukraine fell by 17% to 193 million liters due to the increase of the tax burden and decrease of the purchasing power of the Ukrainians.

Shevchenko noted that from 1 July 2015 after providing of amendments to the Tax Code that equating beer to alcoholic beverages, 7 000 retail outlets have been closed in Ukraine, because many sellers can’t pay 8 000 UAH for license. For wholesale it costs 500 000 UAH.

He said that now the issues of enhancing the tax burden on the industry are discussing at different levels. We are talking about a possible increase in excise duties by 25% on the recommendation of the International monetary Fund (IMF), and the introduction of a tax on packaging recycling. Now the share of excise tax per liter of beer is 13%.

In 2015, the workload of the Carlsberg brewery was 59%, which is 4.5 percentage points lower than in 2014. The sales decreased slightly slower than the market. The company’s market share in value terms has grown by 1.4 percentage points to 29.6% according to the AC Nielsen company’s estimation.

According to Shevchenko, the significant changes were in the dynamics of price segments over the past year. The share of economy segment has declined from 31.7% in 2014 to 30.7% in 2015, mainstream declined from 44.5% to 43.4%, premium increased from 20.9% to 21.2%, and imports increased from 1.4% to 3.2%.

“Most of our innovations last year were aimed at the premium segment,” the CEO of the company added.

Meanwhile, smaller, but active competitors are breathing at the giants’ backs. The founder and CEO of the Persha Pryvatna Brovanya Company (with market share less 5%) Andrew Matsola says to the nv.ua newspaper that despite the falling market he have nothing to complain about.

Last year, the sales volume of his company grew by 18%. “This year the market will fall by 10%, but we plan to grow by 6-10%,” Matsola said.

Tags: beer in Ukraine, Carlsberg Group, Exclusive news

Beer Business #4-2021. Poland beer market analysis
20/02/2022
Current data The influence of export and import Non-alcoholic boom Output and market by value Beer prices Who can afford beer? Segmentation by price Segmentation by channels of sales Beer sales in HoReCa Segmentation by tastes Positions of major companies Kompania Piwowarska (Asahi) Grupa Żywiec (Heineken) Carlsberg Polska Van Pur Polish craft brewers Is there […]...

Beer Business #3-2021. Russian beer market. Beer market of Ukraine.
16/10/2021
In 2021 Russian breweries have not lost their consumers, it even turned out that they started drinking more beer at home and more often. The market has held the high bar of the previous season, yet now it is growing by value and polarizing by price segments. The competition in the market has been determined […]...

Beer Business #2-2021. Kazakhstan beer market: bigger, more complex and more expensive
26/07/2021
Kazakhstan beer market is still growing by volume and value. The consumers’ demands are gradually becoming more complex, there is the market polarization by price and taste segments as license, canned, strong and mild beer popularity is growing. Eye catching new products have a big impact on companies’ positions in the situation of limited advertising. […]...

Beer Business #1-2021. Ubrew – Catalogue of Ukrainian breweries
06/05/2021
The catalogue of Ukrainian breweries contains 251 producers ranging from transnational groups to craft and restaurant breweries. In the catalogue we have combined open official data, information from social networks and where possible, from brewers themselves. The previous “census” was made by us in 2011-2012. So, what has changed over the recent ten years and […]...

Beer Business #4-2020. Russia: regional beer markets
21/01/2021
In the seven regions of Russia we have analyzed: the share of companies of various scales – from federal breweries to minibreweries popularity of brands (license, national and regional); market segmentations by price; the dynamics of output, sales and prices...

Beer Business #2-2020. 2020 what’s new?
20/11/2020
Russian beer market 2020 1) The market positions of the major companies and brands in the first half of 2020; 2) Production structure – from craft to federal breweries; 3) The market segmentation by the price and package. In 2020, the roles of sale channels have changed especially at the draft beer market. The relations […]...

Beer Business #2-2020. The market of non-alcoholic beer in Russia: companies, brands and consumers
01/07/2020
Where is the non-alcoholic beer market heading to? Companies and brands. Baltika as a democratic leader. Heineken – how do you shake up the market and shove up the competitors. AB InBev Efes – premium corner. Non-alcoholic import beer. Non-alcoholic beer – Who drinks it? General conclusions. Summer beer....

Beer Business #1-2020. Russian beer producers (catalogue/database)
27/04/2020
“Catalogue of Russian Beer Producers 2020” includes 1285 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft breweries. This issue has 171 more breweries compared to 2018 (155 business have been excluded and 326 have been included). Starting from 2019, FTS has been publishing data on excise payments by brewers […]...

Beer Business (Pivnoe Delo) #4-2019
09/02/2020
Dmitry Nekrasov’s Philosophy — on the Past, Present and Future of Ukrainian Brewing Industry A meeting with Dmitry Nekrasov always turns into a training course: “Introduction to brewing business“. We are talking to a clever “playing trainer“ a person that can be called a godfather of the Ukrainian craft. He has a dozen of successful […]...

Beer Business (Pivnoe Delo) #3-2019
10/11/2019
Russia: Positions of Brewing Companies The review contains an analysis of interim performance of brewers in the first half of 2019. There are rather dynamic changes behind a modest industry growth. Baltika is again experiencing a stage of volumes and market share slid due to competition with AB InBev Efes. Because of the price competition […]...