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. ...
Contract signed in Beijing drinktec is now a co-organiser of CBB
Covering the period up until 2024, the agreement encompasses a total of seven events. The cooperation will be expressed for the first time at CBB 2012. Messe Mьnchen GmbH (MMG), as the organiser of drinktec, and its Chinese subsidiary MMI Shanghai, will in future be the contact and contracting party for all international, non-Chinese exhibitors at CBB. This responsibility also involves acquisition of these exhibitors, as well as looking after and advising them in advance of and during CBB.
The contracting parties are on the one side MMG and its subsidiary MMI Shanghai, and on the other the Beijing Zhongqing Heli International Exhibition Corporation (BZHC) as the organiser, and the China National United Equipment Group Corporation (CNUE) as the licensee of CBB. The contract came into effect upon signing on 2 August 2011. The next CBB takes place from 19 to 22 September 2012 at the new China International Exhibition Center in Beijing.
For drinktec, this partnership with CBB has a high strategic significance. Commenting on this, Dr Reinhard Pfeiffer, Managing Director of Messe Mьnchen, said: "The worldґs leading trade fair drinktec takes place every four years. Our goal is to also show a presence between each drinktec both nationally and internationally in the relevant markets. The agreement with CBB is an important cornerstone in this. It secures us the required presence and influence in the important Chinese beverages market. It means that in China, too, we are a contact partner for our top customers worldwide and as a result can further strengthen the world-leading trade fair drinktec in Munich. I am confident that drinktec and CBB will complement each other very well."
CBB hopes that the cooperation with the sector leader in Munich will further strengthen its international reputation. Referring to the contract, Mr. Li Zhihe, vice general manager of CNUE, commented: “The cooperation with MMG will bring impetus to the sustainable development of CBB. It will be a win-win cooperation between CBB and drinktec.”
Many of the exhibitors who take part in drinktec, among them many German companies, also exhibit at CBB. For them China, along with India, is the worldґs most important growth market. "These companies are used to the extremely high quality standards that they enjoy at the worldґs leading trade fair drinktec in Munich," explained Richard Clemens, Managing Director of the Food and Packaging Machinery Manufacturers Association (Fachverband Nahrungsmittelmaschinen und Verpackungsmaschinen) affiliated in the VDMA (Germany’s engineering federation). "As MMG and MMI Shanghai will be organising the international participation at CBB, these standards are now guaranteed there, too. As such we, on behalf of the manufacturing industry, very much welcome the cooperation between drinktec and CBB."
In addition to CBB, Messe Mьnchen has a further key involvement in a major global market – in India, where the company organises the trade fair drink technology India (dti) every two years in Mumbai. The organisation of this event is handled via Messe Mьnchenґs subsidiary in India, MMI India. In Germany, an agreement was reached with Nuremberg Trade Fair (Messe Nьrnberg) in November 2010. At Messe Nьrnbergґs international trade fair Brau Beviale, Messe Mьnchen organises PETpoint, the PET segment of drinktec, in the intervening years between each drinktec. "This means drinktec is strategically and conceptually very well set up, and ready for the future," explained Petra Westphal, Exhibition Director of drinktec 2013.
The contract between MMG and CBB marks the provisional conclusion of talks that started back in autumn 2009 and which resulted initially in a marketing agreement regarding CBB 2010. A total of 583 exhibitors took part in CBB 2010, 225 of them from outside China. CBB is regarded as the most important sector event in China and the Asia-Pacific Region. Since its premiere in 1995 it has attracted an ever increasing number of exhibitors and visitors.
drinktec is regarded in the sector as unequivocally the worldґs leading trade fair for beverage and liquid food technology. It can look back on a 60-year history. In 2009 drinktec attracted 1,402 exhibitors from 72 countries. On the six days of the fair, almost 60,000 visitors came to the exhibition centre in Munich, more than 33,000 of them from outside Germany. The next drinktec takes place from 16 to 20 September 2013 at the New Munich Trade Fair Centre.
Click here for pictures of drinktec in our image database online.
This press release including a photo is also available for download from: www.drinktec.com
Further information about drinktec:
Further information about CBB:
Contact drinktec, Messe Mьnchen
Messe Mьnchen GmbH
drinktec Press Office
Johannes Manger and Maritta Dцtter
Tel. (+49 89) 949-21482
Fax (+49 89) 949-20689
e-mail: [email protected]/ [email protected]
Contact China Brew China Beverage (CBB)
Tel: (86 10) 66085371/ 66017874
Fax: (86 10) 66018904
e-mail: [email protected]
Contact MMI Shanghai
Tel. (+86 21) 2020 5500
Fax (+86 21) 2020 5588
E-mail: [email protected]
Further information about Messe Munchen: www.messe-muenchen.de.
2 Авг. 2011