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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.

Zimbabwe’s beer market poised for growth, says Renaissance

Renaissance Capital is bullish about the future of the beer industry in Zimbabwe, and has advised investors to buy the shares of Delta Corporation, the country’s largest brewer.
"Zimbabwe is a beer drinking nation,” noted the investment bank in a recent report.
According to Renaissance, Zimbabweans currently consume an average of 14 litres of beer per person a year. This is more than the Sub-Saharan Africa average of 10 litres, but “well below what we view as its potential level”.

Renaissance expects that economic growth as well as improved affordability, branding, marketing and distribution will boost the demand for beverages in Zimbabwe.

Delta is benefiting from the dollarisation of the Zimbabwean economy. “In 2010, the first full year in a dollarised environment, volume growth was 100%. Dollarisation also catalysed recovery in disposable incomes and this growth sustained the upward trend in demand,” notes the report.

Delta is Zimbabwe’s largest brewer and soft drinks bottler. The company’s brands include Castle Lager, Eagle, Lion Lager, Carling Black Label, Golden Pilsener and Bohlinger’s. Its soft drinks portfolio includes a range of Coca-Cola brands and it also manufactures Chibuku, the market leader in the traditional sorghum beer category. SABMiller, the world’s second-largest brewer by volume, holds a 36% stake in the company.

Compared to many other African countries, Zimbabwe’s informal sector for alcohol is relatively small. According to the World Health Organisation, 68% of alcohol consumption in Zimbabwe is not classified as commercial beer, wine or spirits. Therefore it most likely comprises home-brewed beer. This figure is relatively low compared with other countries such as Nigeria (94%) and Tanzania (86%). Renaissance says this can be explained by the availability of low-cost brands such as Chibuku and Eagle.

“Informal markets for traditional beer used to be more sizeable in farming and mining areas (where mines operated their own beer halls), but the collapse of commercial agriculture together with the decline in mining activity saw most of this fall away. We expect that some of the informal has moved to commercial sorghum beer or cheap lagers,” explains the report.

Renaissance says it expects higher consumer spending as the country emerges from a decade of economic decline. “We have already witnessed increased spend following recovery in small-scale farming (cotton and tobacco) and some mining. We expect firm prices for cash crops and minerals will continue to encourage production, resulting in increased spend in farming and mining areas.”

Recent civil servant wage increases could also have a positive effect on consumer spending.

7 Сен. 2011

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