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. ...
Smaller, lower quality barley crop in west Europe
* Maltsters may have to accept lower quality supplies
Barley harvests in western Europe are winding down with an overall slight fall in the size of the crop and quality also expected to decline, particularly in Germany, crop analysts said on Thursday.
Winter barley in Germany, which is mainly used for animal feed, suffered major damage from the triple blow of a very cold winter, springtime drought and summer rain, according to the farm ministry.
The ministry estimates the winter barley crop has fallen 21.6 percent to 6.76 million tonnes.
Livestock farmers have been switching from using relatively scarce barley to feed wheat.
"Wheat is expected to increasingly replace barley, which is in short supply, in feeding troughs in the EU," German grain trading house Toepfer International said in a report.
Germany is, however, expected to harvest a larger spring barley crop after farmers replanted weather-damaged rapeseed with spring grains.
The farm ministry estimates the spring barley crop, partly used for beer brewing, was up 18.1 percent at 2.01 million tonnes.
Frequent harvest-time rain in Germany, however, threatens to hurt the quality of spring barley.
"The (spring barley) crop nationally is up but the quality is very mixed," one German trader said. "It looks like malt producers and beer brewers may have to accept lower quality than usual in their supplies in the coming months.
FALL IN FRANCE
In France, the barley harvest shed 11 percent from last year and 19 percent compared to the 2006-2010 average, at 9 million tonnes, the farm ministry estimated this week.
The sharp fall was mainly linked to a 10 percent drop in barley yields after a severe drought that hit France until early June.
In terms of quality, some of the spring barley was downgraded to animal feed because of too high protein levels. Spring barley amounts to around one third of the total barley crop in France.
Britain's winter barley harvest in complete while 30 percent of the spring barley remains in the fields, mostly in Scotland where progress has been hampered by rain, crop consultants ADAS said in a report on Thursday.
Production should follow in a similar pattern to Germany with a smaller winter barley crop offset by a rise in spring barley output.
Spring barley plantings in Britain rose 10 percent this year, reflecting strong malting premiums in the run-up to last year's harvest, while winter barley area slipped 8 percent, according to a planting survey issued by the Home-Grown Cereals Authority.
Winter barley yields are seen falling to 6.1 to 6.2 tonnes per hectare, down from a five-year average of 6.5 tonnes while ADAS estimated spring barley yields on par with the average of 5.3 tonnes.
Spain is the only major producer in western Europe to harvest a significantly larger barley crop this year.
The barley has been in for more than a month and rose by 4.5 percent from last year's disappointing crop to some 8.5 million tonnes after an unusually wet spring, according to preliminary official estimates.
Dealers say about 1 million tonnes is of malting quality while the rest goes to animal feed. Spain can be self-sufficient in barley, but only with bumper crops like the 11.3 million tonnes harvested in 2008.
9 Сен. 2011