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. ...
China brewers eye Hong Kong Kingway’s beer assets — source
* Kingway shares up 3.2 pct at three-week high
Chinese brewers including China Resources Enterprise Ltd and Tsingtao Brewery Co Ltd are among potential suitors eyeing bids for the brewery operations of Hong Kong-listed Kingway Brewery Holdings Ltd, a source familiar with the matter told Reuters on Monday.
"Many mainland brewers are interested in the assets including CR Snow, Tsingtao, Beijing Yanjing Brewery Co Ltd and Guangzhou Zhujiang Brewery Co Ltd," said a source close to the company, declining to be identified because of the sensitive nature of the matter. "Many of them have asked for supplementary information. Nothing has been finalised yet."
Kingway, a smaller rival of CR Snow, said in January that it planned to invite beer producers to submit proposals and indicative offers for the possible acquisition of some of its brewery business and assets, as the company reviewed its strategy in uncertain economic conditions.
China's largest brewer CR Snow is a joint venture between China Resources and SABMiller Plc.
In April last year, Kingway Brewery said GDH Ltd, a unit of state-backed Guangdong Holdings Ltd, had exercised the right to buy the 21.37 percent stake held by a Heineken NV joint venture in China, blocking a bid from China Resources. GDH would buy the stake for 1.08 billion yuan ($164.94 million), increasing its holding to 73.82 percent.
Kingway was previously jointly controlled by Asia Pacific Breweries Ltd (APB), a unit of Singapore food and property conglomerate Fraser and Neave Ltd, and the world's third-largest brewer Heineken.
Shares of Kingway, which has a market capitalisation of about $570 million, rose 3.2 percent on Monday afternoon, the highest in three weeks.
The world's largest brewer Anheuser-Busch InBev SA had also expressed interest in buying the assets, Dow Jones reported, citing people familiar with the situation. The report added that bids were due by the third week of February and several parties had expressed interest in buying the assets.
China Resources, whose beer brands include Snow, and Kingway declined comment. Anheuser-Busch InBev and Tsingtao were not immediately available for comment.
China's beer consumption hit 450 million hectolitres in 2010. It is expected to grow 5 percent per year in coming years, double the 2.5 percent growth forecast for the global market this year.
Chinese brewers are making an aggressive push into premium brands, lured by high margins and huge growth potential and posing a tough challenge to the foreign companies that dominate the category in the world's largest beer market.
14 Фев. 2012