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. ...
Asahi Said to Be Near Agreement to Buy Independent Liquor for $1.2 Billion
A deal may be announced as early as Aug. 18, said the people, who asked not to be identified because the discussions are private. Takayuki Tanaka, a spokesman for Asahi in Tokyo, declined to comment. A transaction of that size would be Asahi’s biggest, according to data compiled by Bloomberg.
Japanese beverage makers including Asahi and Kirin Holdings Co., the country’s biggest by market value, are expanding abroad as a declining and aging population hurts domestic demand for beer and soft drinks. A strengthening yen, which hit a postwar record of 76.25 to the dollar in March, boosts Japanese companies’ buying power abroad.
“Japan’s market is mature, so it is inevitable for Japanese brewery companies to seek M&A chances overseas,” Mitsushige Akino, who oversees about $600 million in Tokyo Ichiyoshi Investment Management Co., said by telephone.
Asahi submitted a bid for Independent Liquor on Aug. 4, a person familiar with the matter said the following day. Independent Liquor, owned by Unitas Capital Pte. and Sydney- based Pacific Equity Partners, distributes brands including Woodstock bourbon, Whyte & Mackay scotch, Carlsberg and Tuborg beers as well as pre-mixed drinks in New Zealand and Australia.
Amanda Lee, a spokeswoman at Financial Dynamics, Pacific Equity Partners’ external media adviser, declined to comment on a possible sale of Independent Liquor.
Asahi declined 0.1 percent to close at 1,588 yen in Tokyo trading. The stock has gained 1 percent this year, compared with a 13 percent slide in the broader Topix index.
The brewer’s biggest acquisition has been its purchase of Cadbury Plc’s Schweppes Beverages business in Australia for 550 million pounds, or about $808 million at the time, which was completed in April 2009.
Asahi has lagged behind Kirin, Japan’s biggest beverage maker by market value, in expanding overseas. Asahi has spent more than $2 billion abroad in the past five years, compared with Kirin’s more than $12 billion, according to data compiled by Bloomberg.
Kirin on Aug. 2 paid 3.95 billion reais ($2.5 billion) to gain a stake in Schincariol Participacoes e Representacoes SA, Brazil’s second-largest beermaker.
Asahi last month agreed to buy the water and juice businesses of P&N Beverages Australia Pty Ltd. and New Zealand drink maker Charlie’s Group Ltd. (CHA) for $309 million to expand overseas as sales growth declines at home.
“Developing markets like Brazil or India are still volatile, so I think it is safer and easier for Asahi to focus on Oceania,” Akino of Ichiyoshi Investment said.
Kirin made more than 23 percent of its 1.7 trillion yen in 2010 sales abroad, while Asahi generated 6.6 percent of its 1.5 trillion sales in the same period overseas, according to data compiled by Bloomberg.
The yen traded at 76.87 as of 5:01 p.m. in Tokyo. The Japanese currency may rise past the record it reached in March, spurred by investor flight to haven assets, Eisuke Sakakibara, formerly Japan’s top currency official, said yesterday.
Group of Seven nations jointly sold the yen on March 18, the day after it reached an all-time high amid speculation Japanese companies would repatriate funds to cope with a record earthquake days earlier. Japan unilaterally sold its currency on Sept. 15 in its first intervention since 2004.
17 Авг. 2011