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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.

US. Craft Retail Pricing Grows in October 2nd Scans

Craft beer retail pricing strengthened in the latest 4-week period compared to the August/September numbers. For the scan period ending October 2 pricing gains were at a level of 52 cents per case, up from 14 cents per case growth the during the scan period before. All beer retail pricing grew at 42 cents per case in the 4-week period, down from 55 cents per case the previous period. So we have a bit of a switcheroo from the prevailing trends of the past few months--craft retail pricing growth was higher than the all beer pricing growth, not by percentage, but by real money.

There may be some impact of the amount of feature and display craft is getting at retail relative to other high-end beers. While craft appears to be succeeding in getting shelf space, it remains difficult for craft to get the feature and display that it may merit in the marketplace. It is fortunate for craft brewers that the quality has remained high across nearly all brewers, encouraging trial for the category and that beer drinkers continue to move toward craft.

Craft volume growth continues to impress. Craft volume was up 17.2% against the previous month's growth of 20.7%. The past several months we have seen that volume growth and pricing growth appear to be closely related.

Last month I focused on the recent decline of the companies that reformulated their caffeinated 12% ABV products last fall. Phusion Products was down 30% and United Brands down over 60% this scan period. Did the presence of caffeine make that much of a difference for these products?

Other companies down in volumes in the latest scan period included Anheuser-Busch InBev, MillerCoors, Heineken USA and Diageo, which has started marketing a new product in the U.S. 19 of the top 25 companies grew volumes in scan data. The largest private label contract company, World Brews/Winery Exchange, saw 130% growth in beer volumes, showing that private label for grocery and drug channels is getting more traction in beer. Many in the beer industry do not think this trend bodes well for overall industry volumes as it could lead to the perception among some of commoditization of beer and that beer succeeds with strong brands.

Craft Pricing

4 Weeks to October 2, 2011--up 52 cents per case.

Year to Date 2011--up 44 cents per case

52 Weeks (October 2010-early October 2011)--up 43 cents per case.

Here's a rundown of some of the other craft figures from the SIG report for food/drug and convenience stores.

4 Weeks to October 2, 2011--17.2% volume growth; 19.1% dollar growth. (All beer -0.1/+2.0)

Year to Date 2011--14.3% volume growth; 15.9% dollar growth. (All beer -0.7/+1.8)

52 Weeks (October 2010-early October 2011)--14.6% volume growth; 16.2% dollar growth. (All beer -0.9/+1.6)

Craft gained 0.5 share points over the scan period by volume and 0.7 share points of dollars. Imports and domestic superpremium also gained 0.5 share points in volume. So the low and middle sections of the beer industry are losing 1.5 share points to the high end right now.

The beer drinkers love for hops and the march toward India pale ale remains a solid trend. IPAs gained 2.3 share points in craft and showed 42 percent growth as a style in scans. Variety packs also re-emerged as growing over 1 share as the calendar hit autumn. There is also something very interesting going on with the stout style bucket. I know stouts don't drive a huge amount of volume (at least in this period of beer drinker taste evolution) and are usually not consumed in multiple bottles in an evening. While stouts are up over 25% in volumes, the retail dollar price per case is up $5.55. That is a huge jump, most likely explained by growing sales in the stronger stout styles that traditionally have commanded a higher price--imperial stout, Russian imperial stout and barrel-aged stouts. As the weather turns colder, this seems to be a stylistic area that has significant growth potential for craft brewers, distributors and retailers, and the source of great enjoyment for beer drinkers.

Brewers Association

17 Окт. 2011

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