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. ...
US. St. Louis Brewery outsourcing Schlafly to Iowa brewer
The new arrangements will bring the brewery's total out-of-state brewing contracts to three; production of Schlafly Summer Lager cans moved to Stevens Point, Wis., in 2010. By this time next year, as much as 20 percent of St. Louis Brewery's beers could be made outside of Missouri.
"We're already brewing at close to our maximum here," said brewery co-founder Dan Kopman, referring to brewpubs Schlafly Bottleworks in Maplewood and the Tap Room downtown. The out-of-state brewing arrangements are not necessarily a long-term solution so much as "a way to give us some wiggle room to figure out how much more beer we need to make in St. Louis going forward."
Small and regional breweries have increasingly turned to contract-brewing in recent years as sales of craft beer continue to climb and the shrunken credit market has made it harder to get loans to build new brewing spaces.
"There are - and will continue to be - many contract relationships and conditions as our bursting-at-the-seams industry continues its growth pattern," said Jenn Litz, editor of the online trade publication Craft Business Daily. "There is just not enough money, capacity and time to do things another way in the interim."
Contract-brewing is not new territory for St. Louis Brewery, which had a Minnesota brewery produce its bottled beers for years until Schlafly Bottleworks opened here in 2003.
Yet Kopman says the deals his company has recently brokered with Blackstone Brewery in Nashville, Tenn., and Backpocket Brewing in Coralville, Iowa, are unique in the beer industry. Although St. Louis Brewery has no ownership stake in Blackstone or Backpocket, the locations will operate like "Schlafly satellite breweries," Kopman said.
Blackstone and Backpocket are both being run by former St. Louis Brewery employees - Dave Miller of Blackstone was the Tap Room's original head brewer, and Jacob Simmons of Backpocket worked in the quality-control lab at Bottleworks. Both facilities are similar to Bottleworks in terms of size, brewing equipment and bottling lines.
"These partnerships go much deeper than, 'Here's our recipe. Make our beer,'" Kopman said. "We have been involved in everything from site selection to water analysis. And we've been able to do those things on our terms, with our people and our expertise."
The first Tennessee-brewed Schlafly beers will roll out this year; Iowa production is expected to begin in late 2012. The out-of-state breweries will likely each brew about 5,000 barrels a year of Schlafly beer.
The beer packaging will disclose where it was produced, just as the brewery has done with its Wisconsin-brewed Summer Lager. Kopman said Schlafly beers made in Tennessee and Iowa will be distributed mostly in those areas and will not be sold in St. Louis.
"We still want to be able to make all of the beer that we sell in St. Louis in St. Louis," he said. "I'll always be wedded to the idea of running a sustainable, local business, not to being the biggest beer company we can possibly be."
The brewery, founded in 1991, is on pace to make about 42,000 barrels of beer this year - equivalent to about 14 million 12-ounce bottles - up from 36,000 barrels last year and 30,000 barrels in 2009. Bottleworks and the Tap Room have run out of room to expand production, and Kopman said he'd like to watch how the beer landscape changes in the next few years before taking out a loan for a new facility here.
In the meantime, Kopman and St. Louis Brewery co-founder Tom Schlafly are still moving forward, albeit slowly, with a succession plan to hand off ownership of the company to local investors.
Kopman and Schlafly announced last summer that they had starting looking for a buyer, and a dozen potential candidates have signed confidentiality agreements to peruse the company's financial records. A few of those investors have since lost interest, and no new ones have come forward, Kopman said.
"We're not in any rush," he said, adding that one step of the succession - an employee share-purchase plan - will go into effect by April.
22 Авг. 2011