Dmitry Nekrasov’s Philosophy — on the Past, Present and Future of Ukrainian Brewing IndustryA 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 projects to his name. Dmitry told us about craft beer in Ukraine, on market cycles, on specifity of operating in retail and HoReCa, on union of Ukrainian brewers and certainly, how a brewery of his own, First Dnipro Brewery is doing.
The market of import beer in Russia: review and databasesThe market of import beer is rapidly growing and changing. But while in the past years it was growing due to brands variety, in 2019 major and affordable brands from TOP-10 were developing actively. It seems that the fact of a brand origin from far abroad counties, even if it is not well known but has moderate price and good distribution provides for million liters of sales in the territory of Russia. Among distributors AB InBev Efes was far behind, yet the role of Baltika and suppliers of the second row got more important. The boom of German brands was followed by stagnation of import from other traditional regions (and Belarus) instead the supplies from Mexico, Lithuania and Asian countries grew considerably.
Russia: Positions of Brewing CompaniesThe 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 and presence expansion in the modern trade company #2. has come close to the leading position. At the same time sales of Heineken Russia have continued growing which makes the premium part of the portfolio heavier. The market premiumization trend had been also confirmed by import brands. MBC and Zavod Trekhsosenskiy have been the most successful among federal market players. The market share of independent regional brewers and Ochakovo have continued falling as they are being squeezed out by the market leaders at their competitive fields.
Ukrainian beer market 2019: companies and brandsIn 2019 beer production and market have been still fluctuating about zero point. However, the past season was successful for brewers judging by the sales profitability. The price mix has improved due to rapid general market premiumization, as well as its particular aspect, the growth of import beer sales. By the season end AB InBev Efes improved its positions considerably. It turned out that consumers had not forgot Efes brands that had to leave the market, but started to recover rapidly. Against the stagnating market that meant sales decline of other companies, in the first place Carlsberg Group that most of all beneficiated from Efes exiting the market. PPB turned out to be stable to branding activity of its competitor and Obolon kept the same volumes and at the moment it is the absolute leader of the economy segment. The share growth of independent producers took place thanks to leading craft breweries, that so far do not have a big market weight, but they are rapidly gaining it.
Brewing industry in Kazakhstan 2019During the first half of 2019, the majority of Kazakh brewers made their contribution into positive dynamics. Yet it was companies of the lower division, not the two transnational leaders that raised their production and sales. The shares of draft beer and aluminum can which is rapidly squeezing glass bottle out of the market, have been growing. The price segmentation has remained stable despite the substantial rise of retail prices and fluctuations of brand market shares, while the borders between segments have become blurred. The main events in the industry have been: the announced revision of the beer excise policy, launch of BeerKhan brand in the strong beer segment, and most important – purchasing assets of Shymkentbeer by Arasan.
The trend of complication of Russian beer market is going on and in several directions at the same time. The range has got wider, the import and small segments are growing, namely craft beer, alcohol-free beer and special flavor beer. At the same time, all ex-mega brands and light lagers by Russian brewers are experiencing a decline of their shares. AB InBev Efes, Heineken, MBC and Pivzavod Trekhsosenskiy have exceeded the market, Carlsberg was developing slower than the market and Ochakovo as well as some other mid-sized breweries have been cutting down their volumes. To a big extent brewers’ performance was connected to their ability to reach agreement with networks, sacrifice their margin and enter new markets. Craft brewers are facing a serious danger of producers’ registration introduction – de facto licensing. ...
Japan. Brewers need “some time“ before operations can resume after earthquake and tsunami
Kirin Brewery Company Limited on Monday said the main damage of the earthquake in Japan occurred at the Sendai Plant, where all facilities sustained damage including the collapse of four beer storage tanks, while the tsunami has affected product stocks. At present, operations at the Sendai Plant are suspended, with no date for resumption of operations envisaged as yet.
The Toride Plant also suffered damage to some facilities, including damage to sections of the beer storage tanks and the plant building. Kirin says it envisages that some time will be needed before operations can resume. “We are currently undertaking a detailed assessment of the damage“, Kirin said.
Safety of personnel
Kirin further said, “We are currently in the process of confirming that all our staff are safe and well. As we have not yet been able to confirm the safety of some staff members, we are working hard to complete this process.“
Impact on business performance
“We are currently assessing the damage caused by the earthquake in monetary terms and will provide prompt information if any effects on the business performance of the Kirin Group is envisaged“, Kirin announced.
Sapporo on Monday said:
1. Impact on Operations
Some buildings and equipment at SAPPORO Breweries Ltd.’s Sendai Brewery (Natori-shi, Miyagi Prefecture) and Chiba Brewery (Funabashi-shi, Chiba Prefecture) have sustained damage or been otherwise affected. Those two breweries are currently out of operation. SAPPORO Breweries is currently assessing the damage and losses to its equipment and cannot yet say when operations may be restored. Some equipment is also out of service at SAPPORO Breweries other plants and at some production facilities of SAPPORO Group subsidiaries. As inspections of those buildings and equipment are completed and their safety verified, they will be put back into service.
Product Distribution and Operation of Commercial Facilities
Shipments of SAPPORO Breweries Ltd.’s and SAPPORO Beverage Co., Ltd.’s products bound for the Tohoku, Kanto-Koshinetsu, and Greater Tokyo areas will be suspended. Shipments to these areas, except the Tohoku area, will be resumed as circumstances permit from March 16. For the time being, however, delivery of some products may be delayed.
Some of SAPPORO Lion Ltd.’s restaurants, primarily those in disaster affected areas, are currently closed for business. Opening hours of the company’s other restaurants have been shortened or adjusted as necessary given the state of infrastructure and other conditions in each area.
Properties and facilities held by Yebisu Garden Place Co., Ltd. are currently subject to some use restrictions, but no major damage was sustained to its buildings, which therefore remain in operation.
2. Impact on Financial Results
The Group said it is currently investigating what impact the earthquake will have on its financial results and will immediately disclose any relevant information if it determines that the impact may be material.
Asahi on Friday just said “In relation to the damage situation of Asahi Group, some manufacturing facilities were suffered from the earthquake, and we will continue to work however to assess the impact.“ In view of the emergency situations, the Company decided to cancel the Forum for the Shareholders scheduled to be held after the 87th General Annual Meeting of the Shareholders of the Company. However, the 87th Annual General Meeting of Shareholders of the Company will be held at 1:00 p.m., Friday, March 25, 2011 (JST) as scheduled.
Suntory seems to be less affected directly by the earthquake. The company in a statement said: “We wish to extend our condolences to those affected by the recent earthquake in the Tohoku Region of Japan.
As we of the Suntory Group would like to assist in the support of rescue and recovery efforts in the areas struck by the quake, we have today made a donation of JPY 300,000,000. Additionally, we will donate further relief supplies of one million 550ml bottles of Suntory Natural Mineral Water. 360,000 bottles were shipped immediately on March 12.
Furthermore, we are doing what we can to contribute to efforts to divert power supplies to the affected areas by turning off outdoor advertising lights and cutting back on the use of electricity at our business sites.
We pray for a quick recovery by the affected communities, and will provide continued support to that end.“
20 Мар. 2011