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. ...
China. CRB Spent 330 Million on the Factory in Loudi Settled in Hunan
On June 10th 2011, China Resources Snow Breweries (China) Co., LTD (CRB) officially announced that CRB started building the production base in Loudi. The new factory will be located at Loudi economic developing zone Taihe Industrial Park, covering an area of 300 acres, with a total investment of 330 million yuan. The production plan is to achieve 200-thousand-kiloliters annually.
The secretary municipal committee of Loudi Wu Lin, People's Congress Mayor Shuofu Zhang, China Resources Snow Breweries (China) Co., LTD CTO Wenfeng Cheng, China Resources Snow Breweries (Loudi) Co., LTD Manager Xiangyang Yu and other leaders attended the acquisition ceremony; in addition, Mayor Shuofu Zhang gave a very important speech.
It is important to note that CRB has already owned a factory in Yueyang, Hunan Province, since to 2007. The fact that they settled in Hunan indicates consolidation and a growth in the Hunan market.
According to China Resources Snow Breweries (China) Co., LTD CTO Wenfeng Cheng, the market in Hunan is CRB's most important market in Central China; in addition, it is also the place that carries on their historic mission and supports "Development of the West Regions" in China. Loudi is not only the hinterland in the Hunan province, but also the economic communication hub between the central and western regions; therefore, the establishing of the factory in Loudi is significantly important to the national business strategy of CRB.
CRB already has a solid foundation of marketing in the local area. Since arriving in Loudi in 2005, CRB has benefited from intensive interaction with local consumers, through events like Snow beer festivals, which convince Loudi residents to adopt Snow beer as their local beer brand. These things laid the groundwork for the establishment of the factory in Loudi when the conditions were ripe.
Local industry professionals think that the CRB Loudi factory will be one of the biggest breweries in the Hunan Province, with the most advanced equipment. According to CRB, all the production processed are controlled by computer, and key processes like, saccharification, smashing, fermentation, yeast propagation, filtering, and packaging are all automated processes.
According to publicly accessible information, Snow beer has been leading the industry since 2005; however, in 2010, CRB continued enlarging the sale volume gap between itself and its competitors. Last year, CRB sold over 9.28-million-kiloliters of beer. With 11% growth, and Snow's single-brand sales increased by 16% to 8.413-million-kiloliters, the company consolidated its position as the leading beer brand in the world.
Without question the leader of the Chinese beer industry, CRB does will not lose its momentum in 2011; instead, it plans to keep running faster and faster. This delivers a positive signal: the Chinese beer industry will continue growing at a high speed.
About CRB (China) Co., Ltd.
CRB (China) Co., Ltd., established in 1994, is a professional production and management beer company of the country. It is headquartered in Beijing, China. Its shareholders are China Resources Enterprise, Limited and the world's second largest beer group, SABMiller. CRB is currently operating more than 70 breweries in China, including Snow brand, and holds more than 30 regional brands in the Chinese beer market and has 19.8% of the market share. In 2010, CRB sold over 9.28-million-kiloliters of beer. With 11% growth, the company's total production and sales have been exceeded those of other domestic beer companies for five consecutive years. In 2010, Snow's single-brand sales increased by 16% and reached 8.413-million-kiloliters, consolidating its position as the leading beer brand in the world.
About Snow Beer
In 1964, in a product rating competition, where all the top Chinese beer companies had gathered, a new product took the prize. It was all because of its rich, white, snow-like foam, and long-lasting taste, like a flower, giving it its name: "Snow Beer."
In 2002, CRB (China) Co., Ltd. made Snow Beer into a national beer brand. Snow Beer has a fresh, light taste and is a positive, aggressive, challenging and innovative brand with high popularity among consumers nationwide. It has become a favorite beer among youth. The State Administration for Industry and Trademark Office declared "Snow" brand as "China's Famous Brand" in September 2007.
In 2005, Snow Beer sold 1.58-million-kiloliters of beer and became number one in sales of single-product beer brands. In 2006, Snow became the fastest growing and most valuable beer brand; its brand value reached 11.185 billion yuan. Following 2006, after becoming number one in single-product sales, it reached a record high in 2007: 5.1 million-kiloliters sold; once again, it achieved the best single-product sales in the Chinese beer industry. In 2007, Snow's brand value reached 13.658 billion yuan. Single-brand Snow sales increased by 19.1% in 2008; sales reached 6.1-million-kiloliters, and it was given the "number one single-brand sales" title four times, becoming the world's number-one selling beer brand, with a brand value of 15.3 billion. Snow's brand value increased to 37.726 billion yuan in 2009.
About China Resources Enterprise, Limited
China Resources Enterprise, Limited is listed on the Hong Kong Stock Exchange, as one of Hong Kong's Hang Seng Index constituent stocks. The company focuses on consumer products business, with operations in Mainland China and Hong Kong, and is principally engaged in retail, beverage, food processing and distribution.
About SABMiller plc
SABMiller is one of the world's largest beer companies; it is a London-based company that is listed on the London and Johannesburg stock market exchange. SABMiller has a large-scale production and sale of beer and other beverages in 75 countries on six continents. It owns more than one hundred breweries and two hundred brands of beer; its annual beer sales are about 21.0393 million tons. SABMiller is highly recognized for its production management in the international market and is considered to be a well-operated company in emerging markets. In many countries the company has entered, SABMiller brand portfolio and market shares are all in the market leadership position.
This SABMiller subsidiary news release has been translated from its local market language to English language for publication on www.sabmiller.com. We have attempted to provide an accurate translation of the original material but due to the difficulties of translation slight differences may exist.
15 Июн. 2011