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. ...
USA: Cargill reports earnings drop 7% in Q4 2011
The company recorded an additional $359 million in the fourth quarter from discontinued operations – income attributable to Cargill’s former majority investment in The Mosaic Company. For the full fiscal year, income from discontinued operations was $1.55 billion. Cargill also recognized a one-time accounting gain of $11.49 billion on the May 25, 2011, distribution of its Mosaic shares, which were exchanged for Cargill stock and Cargill debt.
Fourth quarter consolidated revenues were $34.8 billion, a 32 percent increase from $26.3 billion in the year-ago period. Full-year consolidated revenues were $119.5 billion, up 18 percent from $101.3 billion in the prior year. Cash flow from operations was $4.6 billion compared with last year’s $3.3 billion.
“The past year presented a challenging operating environment for Cargill and our customers,” said Greg Page, Cargill chairman and chief executive officer. “From weather-related supply shocks in food commodities, grain export restrictions and rising energy prices to the uneven global economic recovery, looming sovereign debts and deficits, political unrest and natural disasters – the uncertainty led to volatile prices across a range of raw materials. Cargill sought to be a ‘port in the storm’ for our customers, sourcing food and feedstuffs from multiple origins, handling the logistics, managing the risk and delivering reliably.”
Three of Cargill’s five business segments increased earnings in the fourth quarter. Four of the five improved results in the full year. Origination and processing led Cargill’s fiscal 2011 earnings, with results up for the quarter and the year. The segment used its global sourcing and risk management capabilities to deliver reliably to customers while meeting challenges posed by weather-related crop production problems in key growing areas, changing trade flows and fluctuating commodity prices. Despite a softer fourth quarter, the food ingredients and applications segment increased earnings from the year-ago period. The diverse segment, which includes about 40 business units, benefited variably from a mix of factors including higher sales volumes, effective risk management, improved yields and more value-added offerings. Agriculture services posted a strong fourth quarter and year. The segment, which provides crop and livestock producers worldwide with farm services and products, relied on its risk management and grain marketing skills to handle rising input costs and help customers do the same. Industrial earnings also rose in the fourth quarter and full year, boosted by favorable demand and operating efficiencies. Results declined in risk management and financial for the quarter and the year due to lower earnings among the energy businesses.
During fiscal 2011, Cargill invested more than $3 billion in acquisitions and new or expanded facilities that strengthen our commitment to being a reliable supplier and innovative partner to our customers in developed and emerging markets. The company acquired the AWB commodity management business in Australia, Unilever’s shelf-stable condiments business in Brazil, Indonesian starch and sweetener maker PT Sorini Agro Asia Corporindo Tbk, Royal Nedalco’s potable alcohol operations in Europe, a Chinese port facility, a Canadian grain facility and a U.S. corn wet mill ethanol facility. Cargill also is building new or expanded plants in several countries, including animal feed mills in Russia and Vietnam, poultry processing operations in Thailand, a sweetener facility in China and food innovation centers in Brazil and the United States. As it does every year, Cargill also made improvements to existing plants and assets that help keep them safe, energy efficient and environmentally sound.
On May 25, 2011, Cargill and The Mosaic Company completed the closing of the transaction in which Cargill divested its approximately 64 percent stake in Mosaic by exchanging approximately 286 million Mosaic shares for Cargill stock held by the company’s family shareholders, including the Margaret A. Cargill charitable trusts, and for Cargill debt held by third parties. The transaction maintains Cargill’s status as a private company while meeting the diversification and distribution needs of the charitable trusts, enhances the company’s credit profile and ensures its financial results are fully aligned with the performance of the businesses Cargill manages directly. Although no longer a shareholder of Mosaic, Cargill continues to be a customer of Mosaic.
In the first few months of fiscal 2012, Cargill completed the purchase of German cocoa and chocolate company Schwartauer Werke Kakao Verarbeitung Berlin (KVB), Central American poultry and meat processor Corporaci?n Pipasa, and Italian animal nutrition company Raggio di Sole Mangimi. In May, Cargill’s Australian beef operations agreed to form a joint venture with Australian beef processing company Teys Bros. Cargill and the USJ Group announced an agreement in June to establish a Brazil-based sugar, ethanol and bioelectricity joint venture. Both agreements are subject to regulatory approval.
12 Авг. 2011