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. ...
Belgian beer weekend fetes specialty brews
While the major brewers, such as Anheuser-Busch InBev or Heineken, have suffered years of declining volumes in western Europe, smaller operators have discovered there is a growing market for beers with a difference.
"The beer market is decreasing but we are not selling pilsner. We are selling only tasting beer," Philippe Henroz, marketing manager of Chimay, whose Red, Blue and Triple brews are made within the walls of a Trappist monastery in southern Belgium.
Belgians and other Europeans may be drinking less standard lager, with a steady shift to wine and the global recession both playing a role, but still seem to be hanging on to or developing a new taste for specialty beers.
Brewers of these beers will be hoping to drum up further business this weekend at the Belgian Beer Weekend, a sort of mini-Oktoberfest featuring 48 breweries, many of them smaller Belgian players, and more than 350 beers.
Around 70,000 people are expected at the festival on the Grand Place, the gothic and baroque square in central Brussels from Friday to Sunday.
"It is a good event to network with other people and hopefully find some importers from other countries," said Nicolas Degryse marketing manager for Bockor Brewery.
Belgian breweries have been steadily selling more abroad, with long-standing markets in neighbors France and the Netherlands, strong demand in Britain and the United States and growing interest from China and other Asian nations.
Listed Duvel, whose blond namesake beer ferments in the bottle, increased foreign sales by 30 percent in the first half of this year, with export markets now representing 46 percent of turnover.
"Exporting beer is where smaller breweries can effectively compete in the market," Bockor's Degryse said.
Smaller brewers are losing out to the major brewers in the market for more standard lager.
Roman Brewery, in western Belgium, has suffered falling sales of its pilsner beer in Belgium and abroad, but its sales have risen for its specialty beers, which include a blond beer called Black Hole.
Roman will be promoting a new blond beer called Gentse Strop (Ghent noose) at the Belgian Beer Weekend.
Specialty brewers liken their produce more to fine wines than thirst-quenching lager, which can be gulped down by the liter. Indeed with alcohol strengths often from 8 to 10 percent, this would be a dangerous strategy. These are beers to taste and savor.
The marketing strategy for many specialty breweries urges consumers to remember where they drank, who they were with and what was the quality of the beer.
"Our beer, it is not a beer that you drink in five minutes. It is a beer you need to appreciate," Chimay's Henroz said.
Still, specialty brewers cannot simply sit back and expect their old brews to grow.
Bockor Brewery increased its beers sales by 6.7 percent in 2010 thanks to the launch three years ago of 8 percent OMER Traditional Blond,
"If it weren't for that beer, we would have had the same as in past three years," Degryse said.
Howard Gutman, U.S. Ambassador to Belgium, who will be made an honorary knight of the Belgian brewers' guild on Friday, said beer could play a role in restoring the global economy.
When asked what his favorite beer was, Gutman said: "my next."
1 Сен. 2011