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. ...
Korea. Sales of imported premium beer swell
Sales of imported premium beer are on the rise with a growing number of young consumers preferring foreign beers to domestic brands, prompting Korean brewers to pump up imports of Japanese brands.
About 45 million liters of imported beer was sold in Korea last year, up 11 percent from a year ago.
Japanese beer was the most popular with 18,252 tons worth $12.35 million sold, followed by Dutch (9,509 tons worth $10.92 million) and American (5,601 tons worth $8.82 million), according to statistics from the Korea Customs Service.
Imported beer still accounts for only about 4 percent of the annual Korean beer demand which amounts to 3.5 trillion won. The share of imported beer used to be in the 3 percent range two to three years ago, but is now nearing 5 percent.
According to the nation’s largest supermarket chain E-Mart, sales of imported beer in the first month and half of this year jumped 56.2 percent from a year ago, while sales of most other booze dropped.
Imported premium beers selling in Korean market
Only sales of imported beer gained in the same period at third largest retail outlet Lotte Mart as well.
Market watchers said Korean retailers are increasing imports of European beers as the Seoul-Brussels free trade agreement phases out tariffs on European beers within seven years. The FTA took effect on July 1 last year.
E-Mart, which sells 200 types of imported beer including Tibetan and Brazilian brands, increased the volume of beers in its imported beer corner this year.
Imports of Japanese beer have soared most.
Japan’s Asahi has the biggest share ? 30 percent ? of the imported beer market, which excludes foreign beers that are produced in Korea, such as Budweiser and Hoegarden. Asahi beat Heineken, which had kept the No. 1 spot for years, for the first time last year.
Sales of Asahi surged 20 percent from 2010 to some 12.6 million liters last year, which translates into more than 100 billion won in revenue.
Lotte began importing Asahi in 2000. Starting with sales in hotels, Japanese restaurants and clubs, Asahi expanded into supermarkets and convenience stores, showing an annual average sales growth of 48 percent between 2005 and 2011.
“We aim at a 20 percent growth to sales of 1.5 million boxes this year through an aggressive sales promotion policy,” a Lotte Asahi Co. official said.
The company plans to increase the number of bars that sell Asahi draft beer from last year’s 500 to 4,000 this year.
As Asahi, which takes up more than 90 percent of the Japanese beer sales in Korea, is produced in China, it tastes fresher than beer imported from further away, according to industry watchers.
They attribute Asahi’s success also to Koreans’ preference for Japanese companies’ brewing methods and Lotte’s distribution power.
With the demand for Japanese beer expected to keep growing, other Korean companies have jumped into the import business.
Oriental Brewery Co. has imported Suntory Premium Malts of Japan’s third largest brewer Suntory since late 2010.
Hiscot Co., a subsidiary of Hite-Jinro Group, has imported Kirin’s premium bottled beer Ichiban Shibori since 2004, and added canned beer and draft beer to its import list this year. Hite-Jinro is reviewing domestic production of Kirin beers through a technological partnership.
Maeil Dairies Co. began sales of Sapporo beers last year through a subsidiary named M’s Beverage Co. To reinforce the sales of Sapporo premium beers in Korea, Sapporo International Inc. acquired a 15-percent stake in M’s Beverage last month.
Maeil is also reportedly seeking to import Yebisu, Sapporo’s premium beer brand.
Korean breweries are taking steps to expand the sales of imported premium beer in a bid to improve profitability, as it is easier to raise the prices of imported booze compared to domestic beverages, market analysts say.
The decades-old rivalry between Oriental Brewery and Hite, which acquired soju maker Jinro in 2005, is expected to enter a new stage when Lotte Chilsung Beverage Co. builds a beer factory by 2017.
The beverage arm of Lotte signed a preliminary agreement with the municipal government of Cheongju, North Chungcheong Province, last month to build a brewery with an annual beer production capacity of 500 million liters in the city’s new industrial park from 2015 to 2017.
29 Фев. 2012