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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.

UK tax cut for low-alcohol beer will have no major impact on industry, Euromonitor

The UK tax duty reduction on reduced alcoholic beer will not have a strong impact on the beer industry, at least not in the short-term, according to Euromonitor.

In March, the UK government made a decision to introduce a 50 per cent reduction of duty on beers at or below 2.8 per cent ABV from October 2011.

Potential new launches

Euromonitor alcoholic drinks company analyst, Zsuzsa Szilagyi told BeverageDaily.com that there might be some new products in the category to take advantage of the tax relief, with rumours that Heineken is considering the launch of a low alcohol lager.

Guinness also plans to launch a lower alcoholic beer of 2.8 per cent in the UK, the analyst told this publication.

However, as 4-5 per cent ABV lagers made up most of beer consumption, the tax cut is unlikely to have a big impact on the overall market, said Szilagyi.

The analyst said the tax reduction could help companies to increase margins if the products were sold at a significantly lower price.

Szilagyi said the main problem was that the UK beer market was a mature market where consumption was declining, with a shift from on-trade to off-trade consumption.

“Major companies are trying to change their focus from volume to value generation and focus on their core brands,” said Szilagyi.

“The tax increase obviously hit the markets hard, especially pubs, and other on-trade channels, and the market is still adjusting to the new regulations, but a significant shift to low ABV beer is not likely in the short term,” said the analyst.

Opportunity

However, the Beer and Pub Association (BBPA) said the changes could offer a boost for the lower alcohol sector if it was supplied with sufficient investment.

“We think this will be a useful tool in developing what is currently a very small part of the UK beer market,” Andy Tighe director of brewing at the BBPA told this publication.

“It will create more choice for consumers. It may encourage some drinkers to shift from higher strength beers on certain occasions,” he said.

To really stimulate investment and growth this category the BBPA said it is seeking an increase in the 2.8 per cent ABV threshold for reduced duty rate to 3.5 per cent ABV.

"Whilst this has the support of UK Government it requires a change in EU law," said Tighe.

The Campaign for Real Ale also welcomed the decision saying that the introduction of low strength beers in pubs could be a huge boost to the licensed trade.

CAMRA claims its new research shows that half of regular pub goers would like to see more pubs selling a low strength beer option.

This is due to factors such as the ability to help regulate drinking levels, their more refreshing taste, lower calorie content, and lower cost, said the CAMRA.

UK brewer Fullers said it was looking into the possibility of producing a 2.8 per cent beer, but only if the product's taste was not affected.

However, this is no easy feat, Fuller's Head Brewer John Keeling told BeverageDaily.com.

This is because the alcohol content comes from the malt. Therefore the more you use, the more alcohol content you have, he said.

The malt also gives the beer flavour, he explained. But the problem is, if you want to brew a lower alcohol content beer, you can't use lots of malt, he added.

Keeling said the firm's move towards a lower ABV beer was mainly down to customer feedback, people wanting different strength drinks at different times of the day.

10 Авг. 2011

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