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. ...
Russia. Baltika Breweries share buy-back oversubscribed
On 28 April 2011, Baltika Breweries announced the decision of its Board of Directors to buy back its registered shares.
In accordance with the Procedure and conditions for purchasing registered shares of Baltika Breweries, applications were accepted from 01 June 2011 to 20 June 2011, inclusive. Shares were priced at RUB 1407 for one ordinary share, and RUB 1286 for one A-type preference registered share. This allowed the company to offer its shareholders an opportunity to sell their shares at a premium, without brokerage and stock exchange charges, commission fees, and other expenses related to the sale of securities.
All shareholders of the company — owners of ordinary shares, as well as owners of preference shares — were able to submit a share buyback application, regardless of the number of shares they owned.
The share buy-back was successfully oversubscribed as Baltika Breweries has received share buy-back applications amounting to 7% of its share capital which exceeds the maximum of RUB 11.5bn, or 5% of its share capital, that was allocated to the share buy-back.
Since the total price of ordinary and preference shares offered for buyback exceeds the maximum amount of funds earmarked for the share buyback procedure, a share buyback ratio has been established at 0,8701 for ordinary shares and 0,5355 for preference shares.
In the period from 22 June through 22 July 2011, inclusive, corresponding purchase contracts will be signed with the company’s shareholders who submitted their shares for sale.
The shares bought during the buyback should be sold at market price or cancelled with a corresponding decrease of the share capital of the company within 12 months after the buyback.
It is the current intention of Baltika Breweries within the said 12 months' period to propose to the General Shareholders' Meeting that the shares bought back during the share buy-back to be cancelled and reduce the Company's charter capital. This will improve the company’s capital structure and increase earnings per share which is anticipated to positively impact the investment attractiveness of the company and consequently benefit all shareholders.
Baltika’s major shareholder, Baltic Beverages Holding AB (subsidiary of Carlsberg Breweries A/S, Denmark) participated in the buy-back in line with the maximum amount allocated to the buy-back. When such cancellation happens and due to the over-subscription Baltic Beverages Holding AB's holding of company's capital will increase insignificantly.
The company’s issued share capital consists of 151,714,594 ordinary shares and 12,326,570 A-type preference shares. The nominal value of each ordinary and preference share is RUB 1. The company’s issued share capital totals RUB 164,041,164.
For the last several years the company’s shares (ordinary and preference) have been traded on stock exchanges and over-the-counter markets. The shares are traded on two Russian trade stock exchanges: the RTS Exchange (since 2001) and the MICEX Stock Exchange (since 2003). At present the company’s shares in circulation on the stock exchanges are listed in the ‘Listed Securities Not Included in Quotation Lists’ section of the catalogue.
28 Июн. 2011