Pivnoe Delo
abbey-beer-icon

pivnoe-delo_logo5

Top articles

Journals

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.

Fresh beer wars as brewers expand

Global brewing giants are increasingly setting their eye on East Africa as the prime direction for new investment as returns in Western markets decline, analysts said.

Giant brewers Diageo and SAB Miller have over the past few months closed several deals in the East African market, setting the stage for fresh beer wars to be fought mainly in Kenya, Uganda and Tanzanian markets.

SABMiller-owned Nile Breweries Ltd has injected Ush190 billion ($80 million) in the construction of a new beer and mineral water plant, doubling the capacity of the subsidiary as it seeks shorter distribution times in the lucrative western Uganda region.

This brings the brewer’s investment in Africa up to $1.75 billion over the past four years. Diageo has also invested more than $1 billion during the period and it is planning to go big in the wider East African market with the privatisation of Ethiopian breweries.

In Uganda, previous expansion at Nile Breweries Jinja plant helped raise the brewer’s output, but fierce competition in the market dictated by quick distribution cycles has sent NBL looking for fresh strategies to reach consumers faster.

“After completion of the new plant, we expect to save roughly six hours per delivery trip and this will greatly improve efficiency in distribution activities,” NBL managing director Nick Jenkinson said, adding that the company will save between $4 million and $5 million per year on distribution costs.
Uganda Breweries Limited (UBL), the local subsidiary of East African Breweries Ltd is NBL’s main competitor but appears unruffled by the latter’s ambitious expansion.

“We are still expanding production capacity at our Kampala plant. Though western Uganda boasts a fast growing beer market, we believe quicker distribution times and higher working capital among agents will help us deepen penetration in that market,” said a senior executive at UBL, who requested anonymity.

UBL has managed to maintain an average of 5-10 days of beer stocks among agents and this has boosted brand popularity for its flagship products like Senator and Bell.

Annual growth in western Uganda’s beer market is projected at 20 per cent per year, coupled with a consumer base that contributes 40 per cent of Nile Breweries’ total sales estimated at 12 million crates of beer per annum.

Kenyan-based East Africa Breweries Ltd (EABL) has recently invested millions of dollars to boost capacity of its subsidiaries in Tanzania and Uganda. EABL has also doubled capacity of its Ugandan subsidiary at a cost of $19 million at its Port Bell plant and at its Moshi-based plant owned by its unit Serengeti Breweries Ltd at a cost of US$ 40 million. EABL is owned by 50.03 percent by Diageo.

“The boosting of production capacity by EABL and SABMiller is set to intensify ongoing battles for control of the regional beer market,” said Tanzania Securities Ltd chief executive Moremi Marwa.

The moderate growth in per capita GDP is driving the growth potential of the local alcohol beverage industry in Tanzania and region. SABMiller has opened a new plant in South Sudan, made a re-entry into the Kenyan market through its local subsidiary Crown Beverages.

“The East African market still has opportunities for the beer market to grow, even consumption of beer and spirits is still low in the region; that means there is a gap which needs to be filled,” said Joel Nkya, an analyst with Tanzania Securities Ltd.

By Paul Redfern, Bernard Busuulwa and Leonard Magomba.

20 Фев. 2012

Advertising

gea
sidel100x100
portinox

Main topics

Exact matches only
Search in title
Search in content
Search in comments
Search in excerpt
Search in posts
Search in pages
Search in groups
Search in users
Search in forums
Filter by Custom Post Type
Filter by Categories
Home
Magazines
News
×