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. ...
US. Small brewers back bill to change state distribution rules
Brewers say the current law is archaic and is disadvantageous to small brewers who run the risk of signing on with a distribution company that may not operate with the brewers’ best interests in mind.
Since the repeal of Prohibition, alcohol has been distributed in the U.S. through a three-tier system: Brewers sell their product to distribution companies, who in turn market the product to retailers.
The system includes protections to keep large brewers from arbitrarily breaking contracts with mom-and-pop distributors.
In the last few decades, however, the proliferation of small breweries in Massachusetts and across the country has turned the tables, brewers say. Now, breweries say they have no real options to change wholesalers, although wholesalers argue that brewers’ complaints are overblown.
Rob Martin, president of the Massachusetts Brewers Guild and Ipswich Ale, said in a meeting with Daily News editors and reporters this week that brewers roll the dice when they enter an agreement with a distributor.
He said once a brewer makes an agreement with a distribution company, the wholesaler essentially owns the brand in its designated territory and it is extremely difficult to break that bond, even if a distributor is doing nothing to market the brand.
“There is some very, very limited recourse and that is not enough,” Martin said. “This is really a marriage.”
Unless a distributor is defaming a product, he said, it can be nearly impossible to break off the relationship.
Martin said a side project of his was derailed by a distributor in Massachusetts.
Martin said he had started brewing Stone Cat Ale and released it to one of the same distributors he uses for Ipswich Ale. The distributor didn’t do much with the product but refused to release it back to him, forcing him to discontinue that brew, resulting in people losing their jobs.
Meanwhile, he said, distributors can trade brands with little input from brewers.
The legislation, now in the House, aims to give brewers an out when they feel a distributor is not holding up its end of the bargain.
A bill now in the Committee on Consumer Affairs, would allow brewers to buy out their brands from a distributor — based on an agreed-upon fair market value — and take their business elsewhere.
If the two sides could not reach an agreement within 90 days, an outside arbitrator would be brought in.
The measure would only be available for brewers that produce fewer than six million barrels of beer a year or represent less than 20 percent of a distributor’s total business.
There are no brewers in Massachusetts that exceed the six-million barrel limit, said Martin. The only brewers that do are large companies including Anheuser-Busch and MillerCoors, he said.
The chief sponsor of the bill is Rep. Alice Peisch, D-Wellesley.
“I think it’s a question of fairness and allowing the small brewers to have a level playing field,” she said yesterday. “The mechanism for changing distributors is overburdensome, expensive and difficult.”
On the other side of the coin, distributors say the complaints from brewers are invalid.
“We think (the legislation) is a solution chasing a problem,” said John Stasiowski, president of the Beer Distributors of Massachusetts.
Stasiowski said there are remedies in place for brewers unhappy with their distributors and he believes the bill is discriminatory toward large brewers.
Stasiowski also pointed to the success of up-and-coming breweries across the state, seemingly represented by devoted distributors.
“There isn’t a problem there, at least in Massachusetts,” he said.
Jack Hendler, who founded Jack’s Abby Brewing in Framingham, said that in the world of small craft brewing, choosing a bad distributor can be the kiss of death.
“You’re married to this without the potential for divorce,” he said.
Jack’s Abbey, which is going to be doing its first bottling run shortly, just contracted with a small, new distributing outfit that Hendler is confident will do all it can to sell the brand.
23 Фев. 2012