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3-2019

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 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 brands

In 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 2019

During 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.

Carlsberg: Russia Growth Back on Track

The Russian beer market is showing signs of recovery this year, but brewers are suffering from rising costs following last year's poor harvest in Russia, which is leading to price increases for consumers, said Carlsberg A/S Chief Executive J?rgen Buhl Rasmussen.

"The last couple of years have been challenging, but the market is now back on the growth track," Mr. Buhl Rasmussen said in an interview.

Copenhagen-based Carlsberg, which holds a market share of around 40% in Russia through its ownership of the Baltika Brewery, Russia's largest beer producer, expects Russian beer consumption will return to pre-crisis levels by 2015.

Average Russian beer consumption reached almost 80 liters per head prior to 2008, when oil prices reached record highs fuelling Russia's energy-dependent economy. In some big cities like St. Petersburg, consumption reached 100 liters per person.

However, a three-fold increase in beer tax at the beginning of 2010, which let to a 25% rise in beer prices, coupled with the economic downturn caused average beer consumption to fall to just 66 liters a person last year.

Mr. Buhl Rasmussen forecasts a small growth in the market this year, but expects an annual growth rate of between 3% and 5% in the medium term. Russian beer consumption grew 1.5% in the first quarter, but an unusually cold April could affect the second quarter, the CEO said.

The beer market's recovery has been slowed by escalating costs. Commodity and labor costs in Russia are expected to rise 10% this year, compared to an average increase of 5% in other markets, Mr. Buhl Rasmussen said.

Rising commodity prices are causing problem across all regions, but a severe drought last summer that cut Russia's grain harvest by a third has forced the brewer to import grains.

"The hardest hit region is by no doubt Russia," Mr. Buhl Rasmussen said. "We can't absorb the higher costs. In the end, the consumers will have to pay for the rising commodity prices." So far this year, Carlsberg has increased its beer prices in Russia by 7% to 8%, he said.

21 Июн. 2011

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