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. ...
CR Snow’s third strike in Henan to add Shangqiu Blue Beer to its porfolio
The acquisition is preceded by China Resources Snow's acquisition of Zhumadian Yuequan Brewery in April 2010, and its acquisition of Aoke Beer's three factories in Zhengzhou, Luohe and Anyang in January of this year, in another strong move to establish its layout in Henan. In about a year, CRB has launched consecutive strikes in Henan, highlighting its intention for development in the province. Through this acquisition, CRB's preliminary strategic layout in the China market is coming to light.
Industry sources believe that Shangqiu's geographical advantage and strategic significance indicates that Lanpai's acquisition and consolidation further solidifies CRB's current leading position in the eastern Henan market, and promotes CRB's contiguous operations in northern Anhui, northern Jiangsu and eastern Henan. At the same time, this ties in with the four production bases in Zhengzhou, Luohe, Anyang and Zhumadian, propelling Snow Beer's full development in the Henan market. CRB, leader of Chinese beer, has launched its agenda to enter central China, and the new drawing board in Henan beer has emerged.
Lanpai is one of the large beer producers in Henan, and is situated in the famous historical and cultural city of Shangqiu, at the junction of Henan, Shandong, Jiangsu and Anhui, with a production capacity of about 15 million litres. Its main selling brand, Let's, is Henan's well-known beer brand, with a considerable competitive advantage of nearly 60% market share in Shangqiu and the surrounding areas.
CRB stated once the acquisition has been completed, additional investment will be injected into the newly purchased plant, to be dedicated to technology upgrades and modifications. The new company will be fully introduced to CRB's strict management system and quality assurance systems, and efforts will be focused in areas such as safety and environmental protection, as well as energy-saving measures. At the same time, a new plant construction, which entails a production capacity of 20 million litres, will commence immediately, bringing CRB's Henan production capacity to 100 million tonnes.
Industry data show CRB achieved significant growth in Henan market sales, market share, brand preference and other indicators, in comparison with those in 2010. CRB, with its active, aggressive and challenging brand philosophy, once again set off huge waves in Henan.
CRB Managing Director Wang Qun stated, "With successful development strategies, effective execution of consolidation and persistent brand building, CRB has made considerable progress in development. Consecutive acquisitions in Henan Province will further promote our dominant position in the central China market. At the same time, it indicates CRB's determination and confidence to play an active part in upgrading Henan's brewery industry, creating healthy competition and sound development among Henan beer brands."
As a leader in China's beer industry, Snow Beer has been far ahead of the industry since 2005. In 2010, CRB continues to widen the gap between its competitors in beer sales. Last year, CRB's beer sales exceeded 928 million litres, at an annual increase of 11%, within which the Snow brand singly increased by 16% to 841.3 million litres, solidifying its status as a world leading beer brand.
About China Resources Snow Breweries (China) Co., Ltd.
Established in 1994 China Resources Snow Breweries (China) Co., Ltd. is a national professional brewing company which produces and manages beer, and is headquartered in Beijing, China. Its shareholders are China Resources Enterprise, Limited and SABMiller, the world's second largest brewing group. CRB currently operates over 70 breweries in China, with Snow Beer and more than 30 regional brands in its portfolio, and has a 21% share in China's beer market. In 2010, CRB exceeded 928 million litres in beer sales, at an annual increase of 11%. The company's total production and sales capacity has been far ahead of other domestic beer brands for six consecutive years. In 2010, Snow's single-brand sales further increased by 16% to 841.3 million litres, consolidating its position a world leading beer brand.
In 1964, at a product rating convention, packed with beer experts and authorities, a new product defeated all other longstanding Chinese beer brands to take the top prize. This beer, named after its rich, snow-white foam, and a lingering fragrant flavor, is "Snow". In 2002, CRB dedicated its efforts to package Snow Beer as a nationwide brand. Snow Beer has been widely popular with domestic consumers due to its fresh, mild flavor, and its active, aggressive, challenging and innovative brand image, and has become the favourite beer brand among the younger generation. In September 2007, the State Administration for Industry and Commerce listed Snow brand as "China's Famous Brand." In 2005, Snow Beer became the top-selling beer brand in China at a single-brand sales of 158 million litres. In 2006, Snow brand became China's fastest-growing and most valuable beer brand, valued at 11.185 billion RMB. Following its title for the highest single-product sales in 2006, Snow brand achieved a new record high in 2007 with sales of 510 million litres, winning the title of the top-selling single product in Chinese beer industry for the second consecutive time. In 2007, Snow's brand value reached 13.658 billion RMB. In 2008, Snow's single-brand sales increased by 19.1% in sales to reach 610 million litres, winning its fourth consecutive title as the top-selling national single-brand and became the top-selling beer brand worldwide, at a brand value of 15.3 billion RMB. In 2009, Snow's brand value increased to 37.726 billion RMB, and in 2010, its brand value increased by almost 10 billion to 46.368 billion RMB, ranked 29th amongst "2011 China's Most Valuable Brands".
About China Resources Enterprise, Limited
China Resources Enterprise, Limited is listed on Hong Kong Stock Exchange and is one of Hong Kong's Hang Seng Index constituent stocks. The Group focuses on consumer product business, with operations in mainland China and Hong Kong, and mainly engages in retail, beverage, food processing and distribution businesses.
About SABMiller plc
SABMiller is the world's largest brewing companies, and is listed in London and Johannesburg stock markets respectively. Its headquarters is based in London, UK. SABMiller engages in large-scale production and sales of beer and other beverages, with operations throughout the world on over six continents. SABMiller has over 100 breweries and 200 beer brands in 75 countries, with annual beer sales reaching 21.03 million tonnes. SABMiller's production management is highly regarded internationally, and is considered outstanding in its operations in emerging markets. SABMiller's brand portfolio and market share are in leading positions in many of the markets it entered. In May, 2002, SABMiller acquired United States Miller, Inc., and has since entered the world's largest beer market and profit centre.
About Shangqiu Lanpai Brewery Ltd.
Shangqiu Lanpai Brewery Ltd. was founded in 1981, and after three technical transformations and expansions, has a production capacity of 150,000 tonnes. Its gross assets are valued at 518 million RMB, covers an area of 550 acres, and is a dominant beer producer in Henan Province, a star enterprise in Shangqiu star enterprise, and one of Henan's key enterprises. In 1994, it was promoted to a first tier national enterprise, and was listed by the State Economic and Trade Commission as one of the "Top 10 National Beer Business" for key support.
Its main brand, Let's, is a favourite among local consumers, and has become a strong regional brand. It boasts strong sales in eastern Henan, northern Henan, southern Henan, Shandong and other regions, and maintains nearly 60% market share in the Shangqiu region.
Shangqiu Lanpai Brewery Ltd. is one of the large beer producers in Henan, and is situated in the famous historical and cultural city of Shangqiu, at the junction of Henan, Shandong, Jiangsu and Anhui. To its east is Lianyungang, and reaching west is the Eurasian Continental Bridge in Rotterdam, The Netherlands. Longhai Railway and China's longest north-to-south traffic artery, Beijing-Kowloon railway, Beijing-Zhuhai National Highway 105 and Lianyungang-Horgos 310 State Road, and Huolian Expressway all come together at Shangqiu, forming the three golden passageways through railroad, highway and expressway. It has excellent transportation and geographical advantages.
"Let's" is a famous trademark and well-known brand in Henan Province. It has received provincial and ministerial outstanding awards, Ministry of Light Industry Class A Product Awards, 92 Paris International Gold Award, 94 Paris International Special Gold Award, 95 National Beer Industry Quality Awards, Henan Province Product Quality Supervision and Inspection-free Title, Henan Famous Protected Brand Award, China Market Reputation Brand Award, and Chinese Light Industry Outstanding Product Award.
After 28 years of development, Shangqiu Lanpai Brewery Ltd. has established a more comprehensive enterprise quality management system. It has ISO9000 quality management system, ISO14000 environmental management system, ISO22000 food safety management system and management system certification.
27 Июл. 2011