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. ...
SABMiller Says Modelo, Heineken Thwart Mexico Beer Choice
By Crayton Harrison and Brendan Case - Mar 2, 2012 11:31 PM GMT+0200 .LinkedIn Google +1 Print QUEUEQ..Grupo Modelo SAB (GMODELOC) and Heineken NV (HEIA) are blocking consumer choice in Mexico, the world’s sixth-biggest beer market, with inducements to businesses to thwart rival brewers, SABMiller Plc (SAB) said.
Modelo, maker of Corona beer, and Dos Equis producer Heineken offer loans, upfront payments and refrigerators to restaurants and retailers that agree not to serve other brands, said Armando Valenzuela, the head of SABMiller’s Mexico unit.
The practice is the focus of SABMiller’s 2010 antitrust complaint against Mexico’s two largest brewers, the second time the London-based company has formally accused them of blocking competition. Mexico’s antitrust agency decided Feb. 14 to extend an inquiry into the complaint for 120 business days after grouping it with other cases filed by undisclosed parties.
“We haven’t been able to sell to clients because they’re exclusive with one or the other,” Valenzuela said in an interview at Bloomberg’s Mexico City office. “What we’re seeking is access to the market that we don’t have now.”
Mexico’s beer market is a prize for brewers because it’s still growing while U.S. and European consumption stagnates. Volumes will rise 2.9 percent a year to 73 million hectoliters (1.9 billion gallons) in 2015, according to research firm Plato Logic Ltd. in London.
Cuauhtemoc Moctezuma, the Mexican unit of Amsterdam-based Heineken, said it strictly observes the country’s competition law. Actions that restrict competitors from entering a market can only be punished if they are found to hurt competition more than they enhance it, the company said in an e-mail.
“We’re in a permanent battle with our competition for the conquest of each customer and each client that sells our products,” Cuauhtemoc Moctezuma said.
Jennifer Shelley, a spokeswoman for Mexico City-based Modelo, declined to comment.
Modelo fell 0.4 percent to 83.62 pesos at the close in Mexico City. Heineken slid 0.7 percent to 39.60 euros in Amsterdam, and SABMiller was little changed at 2,583 pence in London.
SABMiller is the world’s second-largest brewer. No. 1 Anheuser-Busch InBev NV (ABI), which is based in Leuven, Belgium, sells brands such as Budweiser in Mexico and has a 50 percent, non-controlling stake in Modelo.
SABMiller has found a niche in some cities near the U.S. border and in retailers such as Wal-Mart Stores Inc. (WMT)’s Mexican unit. That hasn’t been enough to challenge Modelo and Heineken, whose combined market share exceeds 90 percent, according to Lauren Torres, an analyst at HSBC Holdings Plc in New York.
“Mexico’s been one of those markets where the doors are technically open to foreign competition,” Torres said in a phone interview. “But because of the heritage and the history and relationships, it’s incredibly hard to make any inroads and have any notable business there when you have these very strong players fending off competition.”
Torres has a “neutral” rating on SABMiller, Modelo and Heineken.
Heineken entered the Mexican market by buying Fomento Economico Mexicano SAB’s brewing unit in 2010 in a transaction that Femsa valued at $7.35 billion when it was announced.
SABMiller has been selling in Mexico for two decades with brands that include Miller Lite, MGD and Miller High Life. The company almost succeeded in striking a blow against exclusivity deals in 2006, when the antitrust agency ordered Modelo to drop such contracts.
Modelo appealed the ruling, and regulators reversed course later that year, dropping the case after concluding that the original decision should have evaluated the market for all low- alcohol-content beverages and not just beer.
Eduardo Perez Motta, Mexico’s antitrust chief, said in a 2006 interview that while exclusive deals aren’t prohibited by law, they’re banned when “done to displace competitors.” He said at the time that regulators would pay “close attention” to the beer industry.
An antitrust official who can’t be identified under the agency’s policy declined to comment this week because the probe into SABMiller’s current complaint is in progress.
“We’re seeking for the Mexican consumer to be able to choose his beer brand, whether it be domestic or imported,” Valenzuela said. “Many consumer categories already offer a choice in Mexico, but beer doesn’t.”
7 Мар. 2012