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. ...
Having a Beer With the Boss of Molson Coors
Molson Coors boss Peter Swinburn can have a beer whenever he wants, of course, but recently he had good reason to crack open a cold one: Coors Light, his firm's top American brand, overtook Budweiser to become the nation's No. 2 best-selling beer. For the first time in almost two decades, a brew not made by Anheuser-Busch InBev emerged as one of America's two favorites (Bud Light remains No. 1). "I went and had a Coors Light to celebrate," Swinburn says.
Still, for all the merriment that often surrounds drinking it, the business of making beer has been pretty tough lately. Indeed, while liquor and wine sales have grown significantly over the past few years, the U.S. market for beer has been flat. It's even worse for mainstream brands, prompting some industry watchers to question whether there's a generational shift away from the beers that baby boomers and older Americans craved. Despite Coors Light's new ranking, Molson Coors (TAP: 42.87, -0.08, -0.19%), the world's seventh-largest brewer, is selling less beer now than it did in 2010. The Denver-based firm has missed profit expectations for four straight quarters; its stock was down 11 percent last year. Some analysts wonder how Molson Coors can increase its business considerably, because the firm is already the top beer seller in Canada and No. 2 in the U.S. "It's hard to grow when you already have a big part of the market," says Edward Jones analyst Brian Yarbrough.
CEO Interview: Darden Restaurants' Clarence Otis Jr.
.Swinburn, a 37-year veteran of the beer business who took the helm in October 2007, is looking to tap other markets -- the firm sold 50 percent more beer internationally in the first three quarters of 2011 than it did in the year-earlier period. At home, the firm has grown its craft-beer sales significantly, thanks to its successful Blue Moon brand and its recently launched Batch 19 -- a crisp, earthy brew based on a pre-Prohibition recipe found in the company's Golden, Colo., archives. Coors Light grabbed the No. 2 beer spot in part because of its neat bottle (the white mountains on the bottle turn blue when the beer is very cold). The company has also cut costs since Molson and Coors merged in 2005. But all those moves are small beer compared with the problem of getting people to drink a lot more of its core brands, Molson Canadian and Coors. SmartMoney sat down with Swinburn at the company's headquarters to discuss how he plans to woo his top customers, why his investors should stay patient and when he tasted his first Molson Coors beer.
What was it like taking the helm at the firm during the recession?
It was a bit like being hit by a tsunami. Our core consumers, who in the U.S. are 21- to 25-year-old males making between $20,000 and $40,000 a year, got hit tremendously hard. I mean, virtually overnight. It made us focus on innovation, which we had not done a good job of at all until then, and it also accelerated our move into other international markets.
Do you think the growth in those new markets will make up for what's lost here?
No. Eventually they will contribute significantly to our growth, but our core business is so big that that's what we have to continue to concentrate on.
How do you compete with other alcoholic beverages?
When you look at the needs of our consumers, undoubtedly there's white space that we're not filling and that is being filled to some extent by non-beer products. We need to ensure that we address the space while also making sure our existing brands are relevant. In some instances, we can address it with beers. Our new Batch 19 is a pre-Prohibition beer. It has a sort of rebelliousness about it as a brand, and we've been building off that.
So how is Molson Coors innovating to fill more of that white space?
The cold-activated bottle for Coors Light has been a tremendous success. Where we need to build is from a product point of view. We launched a brand called Leinenkugel's Summer Shandy, which was the most successful craft launch this summer. But unless you understand what needs you're satisfying, just coming out with a flavor or color or taste is like throwing mud at a wall.
The stock hasn't performed well lately. What should investors think?
In three years, we grew profits by over 30 percent, and we've paid off debt. We're throwing up twice as much cash now as we were three years ago. Understandably, what investors are saying is, 'You are a company that is very deep in some very big markets; we don't know where growth is going to come from. Until you prove to us that you can show growth, we're cautious.' That's what's happening, in a nutshell.
You grew up in Wales. When did you try your first Molson Coors beer?
When I came to the States 20-plus years ago, we brought our children to Disney World. We were here for three weeks. The first few days, I tried every beer I could, and I didn't like any. I eventually found Coors Original. That's what I drank all the time I was here. About 12 years later, I began working for them.
16 Мар. 2012