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. ...
Light Beer Fights for Life as Craft Brews Invade Shelves
McBrien was sketching out plans to resurrect light beer, a $50 billion market battling to stay relevant as makers of craft beer, wine and spirits increasingly steal customers from Molson Coors Brewing Co. (TAP), SABMiller Plc (SAB) and Anheuser-Busch Inbev NV. (ABI)
Light beer is ceding ground as cabernet-loving baby boomers and millennials weaned on exotic cocktails seek more complex flavors in their brews. High unemployment among light beer drinkers also has prompted some to drink less or switch to cheaper brews. In a bid to return the froth to light beer, the U.S. joint venture between Molson Coors and SABMiller last week unveiled new advertising for a key brand, Miller Lite.
If the companies can’t revive the brand, “we’ve got big trouble ahead of us,” said Bump Williams, whose Stratford, Connecticut-based BWC Co. advises more than 100 beer retailers and distributors. “Light beer has become a commodity.”
The new Miller Lite ads will revive the brewer’s classic tagline, “It’s Miller Time.” Aimed at men in their 20s and 30s, the campaign will tone down outdated talk of carbs and calories in favor of a “brewed for brotherhood” theme. The brand will spend 50 percent more on media during the crucial summer selling season.
“Miller Time is all about real friends getting together over a real beer,” MillerCoors Chief Marketing Officer Andy England said in an interview. “We’re going to articulate that with a kind of Midwestern grit that can only come from Miller Lite.”
Light beer, an American invention, took hold in 1975, when Miller Brewing Co. became the first to distribute a low-calorie beer nationwide. Now four of the five best-selling suds in the U.S. are light beers, including Leuven, Belgium-based Anheuser’s Bud Light and MillerCoors’ Coors Light.
Still, as consumers turn to more exciting alternatives, U.S. beer sales volumes have dropped for three straight years, including a 1.5 percent decline in 2011, according to the Beverage Information Group, a Norwalk, Connecticut-based researcher. Coors Light -- the only Top 5 U.S. beer still growing -- posted a 1 percent increase last year, the same as in 2010.
The shift has retailers stocking more wine and spirits. Beer lost 2.3 share points of display space during the past five years as spirits and wine gained, according to Nick Lake, senior director of category management for Heineken NV (HEIA) in the U.S. in Atlanta, who cited Nielsen data.
“Our competition has convinced retailers that their categories are providing more value and have more relevance with the consumer,” Lake said at an industry conference hosted last month by Beer Business Daily in San Diego.
Miller Lite has always sought broad appeal, with early television ads featuring athletes pitching the brew as “Everything You always Wanted in a Beer. And Less.” New York Yankees baseball legends George Steinbrenner and Billy Martin later argued over whether it was better to say the beer “tastes great” or was “less filling.”
By the mid-2000s, craft beer’s rise made it harder for light beers to make a case for taste. They tried anyway. In 2008, Miller Lite brought back the “Great Taste, Less Filling” idea in its advertising amid falling sales. Anheuser-Busch went with the tagline “Drinkability,” a brewer’s term used to describe beer that goes down easy.
The following year, Miller Lite advertised itself as “triple hops brewed for great pilsner taste,” as more Americans discovered more heavily hopped craft beers such as New Belgium Brewing Co.’s Fat Tire. Miller followed that up with its “Taste Greatness” campaign. Sales didn’t recover.
Coors Light has grown while largely staying away from taste claims, focusing instead on what it calls “Rocky Mountain Cold refreshment.” Coors Light used special ink on cans to show when the beer was at its optimal temperature.
The industry also has attempted to juice sales with packaging innovations, such as wide-mouth screw top cans, aluminum bottles and wide-mouthed vented cans. Now Anheuser is turning to higher alcohol content with the January introduction of Bud Light Platinum, featuring 6 percent alcohol, compared with 4.2 percent for regular Bud Light.
Miller Lite will ship new cans by Labor Day that have darker, more masculine blue graphics. Other cans will have a perforated second opening that will have to be punched out with a tool of the drinker’s choice, because millennial guys “like to tinker,” England said. The opening will allow the beer to flow more like a glass, he said.
Miller Lite focused on its buddy theme after research revealed that sociability was high on beer drinkers’ minds. England said the campaign will go beyond Bud Light’s more generic “here we go” advertising, by focusing on close friends, not just acquaintances.
“We’re going to kill it,” England said. “Obviously, I’d like to see some immediate results, but what’s more important is sustainable improvement.”
28 Мар. 2012