Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Analysis of beer market in China
China’s transition to a “new normal” reality backfired on the brewing industry unexpectedly. Stagnation and subsequent market decline resulted from dynamic social and economic changes. There has emerged a “two speed” market where the medium class significance is growing, yet the share of main beer consumers, “blue collar” is decreasing. Also the inflow of consumers is shrinking, as demographics stopped being a growth driver. Finally, beer is giving way to other alcohol drinks....
Japanese craft beer is finding a warm welcome away from home
But it's a different story in overseas markets, where Kiuchi Brewery is busy writing its own chapter of growth.
MADE TO SHIP
Sporting an iconic owl mascot and bold, English-heavy labels, Kiuchi Brewery's Hitachino Nest line of beers is often mistaken for imports by Japanese drinkers. And yet it is their "Japanese-ness" that has helped make these beers a hit elsewhere in Asia.
In Singapore and Bangkok, it is not difficult to find restaurants that offer Hitachino Nest on tap, and locals are lapping it up.
"Japanese ingredients like local rice and malt mean the beer goes well with Asian food, unlike the same kind of imported Western beer," said a 29-year-old Thai man who has been a big fan of Hitachino Nest since he first came across it at a restaurant in Bangkok. In his opinion, "Hitachino is a mixture of East and West."
According to the National Tax Agency, Japan had 173 craft beer makers as of March 2014. A survey from corporate credit researcher Tokyo Shoko Research in 2015 showed at least 22 makers export their wares.
Kiuchi has partnered with about 30 foreign distributors, and Hitachino Nest is now sold in more than 30 markets. Its total overseas annual sales volume is 3 million bottles (330ml per bottle), or roughly 1,000kl. That's an impressive figure, considering that 77% of Japanese craft beer makers produce less than 100kl a year, according to the National Tax Agency.
Kiuchi's headquarters is in Naka, Ibaraki Prefecture. Located two hours from central Tokyo, Naka is typical of smaller Japanese cities: It has a population of just 54,000, and there are no tall buildings to interrupt the view of houses, farms and rice fields.
From the outside, Kiuchi's office and factory have the appearance of a traditional wooden building. The people and the facilities inside, however, are anything but old-fashioned. The factory is mostly automated, and the staff, wearing owl-emblazoned jerseys, welcome guests for tours.
Indeed, the company has a history of adapting to change.
24 Mar. 2016