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. ...
The global outlooks of the legal market of cannabis are excellent. It is possible to simultaneously imagine dry law repeal and craft brewing boom but not in one but in several consumer categories. For alcohol is contained in liquids and cannabis derivatives can be in three physical forms.The value of legal market of cannabis and its products can reach 10% of the world beer market in five years, and in 2030-2040 even reach the same scope provided the current rates of legalization and development of market infrastructure remain at the same level. Cannabinoids are actively integrating into the food industry from chewing gum to beverages deforming the pharmaceutical and alcohol markets, they influence the trends of healthy lifestyle and beauty. ...
Heineken Should Target Ethiopia, Congo for Growth, Africa Head De Man Says
The maker of Amstel and Star lager should target markets with relatively low beer consumption and fast-growing economies, which are supported by investment and, when necessary, global political intervention to aid stability, according to Tom de Man, who steps down from his role as president of Heineken’s Middle East and Africa unit in August. Rwanda and Burundi may also provide growth opportunities, he said.
De Man, 63, helped increase Heineken’s revenue in Africa and the Middle East to 1.98 billion euros ($2.8 billion) in 2010 from 846 million euros in 2003. The unit last year delivered an operating profit margin higher than any other region. Heineken got about 23 percent of its profit from Africa and the Middle East in 2010 compared with 33 percent from western Europe, the biggest contributor to revenue and profit. Nigeria, where Heineken first started brewing beer in 1949, is now the company’s biggest market in the region, De Man said.
“I compare most of our Africa breweries to ships,” De Man said in a telephone interview from Amsterdam. “You’re on the high seas, every now and then,” restricted by poor infrastructure and even political instability, he said.
Heineken, which competes with brewers including SABMiller Plc (SAB), Group Castel and Diageo Plc across the African continent, is already expanding in Ethiopia and said this year it will buy two state-owned breweries in the country. The company has 46 fully- or partially-owned breweries in Africa, excluding the two new purchases in Ethiopia.
Heineken has had a brewery in Kisangani in central Congo since 1957. The Dutch company brews or exports beers across all of Africa and the Middle East, with the exception of Libya, De Man said. Many African countries have a negative reputation, he said, even as their economies grow at a faster pace than the U.S. and eurozone.
“We only know the bad messages about it -- civil war, genocide -- but in the olden times, it was a developed area, and you see slowly and surely things are coming back,” he said.
Congo holds a third of the world’s cobalt reserves and 4 percent of all copper, and is recovering from more than a decade-and-a-half of conflict, which destabilised the country’s infrastructure and economy. Ethiopia is the world’s second- biggest recipient of foreign aid, after Afghanistan, according to the Organization for Cooperation and Economic Development. The country has recorded an average economic growth rate of 11 percent over the past seven years, according to government data.
“It’s been a bad time in Africa, but we’re talking about the ‘90s, when there was a lot of instability,” said Gerard Rijk, an analyst at ING Groep NV in Amsterdam. “In the last five years, there’s enormous money flow moving into Africa because of all the commodities.”
Hazardous roads, insufficient energy supplies and the difficulties of getting basic machinery for breweries all add to the challenges of operating in the continent, according to De Man, who was appointed as Heineken’s managing director for sub- Saharan Africa in 2003 and has also overseen the company’s expansion into markets including China and South Korea.
Heineken now employs a group of people who specialize in importing goods to Africa, even occasionally chartering planes to fly in brewing equipment, he said.
De Man learned the challenges of operating in Africa with his first posting as brewery manager at Nigerian Breweries Ltd. in 1973, where he spent three years in Aba, about 60 kilometers north of Port Harcourt in Nigeria. He took his family with him, home-schooling his child, and the only means of communication was via a short-wave radio. Heineken’s expansion in Nigeria, Africa’s second-biggest beer market, is among the things he’s most proud of, and he regards the company’s growth there as a blueprint for future expansion in the region.
The company now has 12 breweries in Nigeria, where the estimated population of 155 million, according to the CIA World Factbook, is three times bigger than in South Africa, the largest beer market in the region. Nigeria also has a relatively low per-capita consumption of beer, he said.
De Man said he’ll continue as non-executive director at some of Heineken’s African units after he retires, emphasizing the importance of handing on knowledge of “the scenery” in the region to his successor, Siep Hiemstra.
He’d also like to indulge his love of travel with a trip on the Congo river, perhaps on one of Heineken’s ships carrying supplies to inland breweries, he said.
“Thinking ‘invest before the market’ has proved very successful,” De Man said. “There’s so much growth that it’s a challenge for everybody to make sure you install sufficient capacity all the time in those countries to maintain and grow your positions.”
8 Июл. 2011