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. ...
Asahi closing in on 1 billion pounds StarBev deal — sources
The two were hammering out the final details of a deal which could be announced as early as next week after Asahi was left as the only bidder, but the people said that the deadline was flexible and matters could still change.
"Asahi and CVC are putting the finishing touches to a deal," said one source with knowledge of the deal on Friday.
Another source said the two were looking to agree "just bits and pieces of detail" and once these were agreed then the process can move quickly towards signing an agreement.
Earlier this month, Reuters reported that Asahi was seen as a frontrunner in the auction to buy StarBev.
CVC, which bought StarBev in December 2009, put the business up for sale after approaches from a number of brewers thought to include Asahi, Carlsberg (CARLb.CO), SABMiller (SAB.L) and Heineken (HEIN.AS).
The private equity firm had bought the business from the world's biggest brewer Anheuser-Busch InBev (ABI.BR), calling it StarBev after its Czech beer Staropramen, and although AB InBev has the "right of first offer", at least two sources with knowledge of the deal said that AB InBev is not going to buy back the assets.
The business has operations in nine eastern European nations including the Czech Republic, Romania, Bulgaria and Hungary, and although it has been hit by recent weakness in eastern European economies, it is still seen as a long-term growth story in a rapidly consolidating brewing world.
All parties involved either declined to comment or could not be immediately be reached for comment.
Big European brewers SABMiller, Heineken and Carlsberg had looked closely at the StarBev business but had concluded that anti-trust hurdles would be too difficult to overcome as all three have sizeable interests in eastern Europe.
AB InBev sold the business to cut debt after buying Anheuser Busch for $52 billion in cash in 2008 and is seen unlikely to buy back its relatively small positions in a range of markets while its eye is on the sizeable shares it has in key markets such as the U.S., Brazil, Russia and China.
The Belgium-based brewer could still earn a return if the business is sold to Asahi as when CVC bought StarBev for around $2.2 billion it agreed with AB InBev potential future payments of as much as $800 million based on CVC's return on its investment.
The brewer of Japan's top-selling beer "Super Dry" has been expanding abroad and last year Asahi president Naoki Izumiya signalled more overseas deals were likely as it aims for over 20 percent of its sales from foreign markets by 2015.
In Europe, the four big brewing stocks were all higher at 01:20 p.m. British time with AB InBev gaining 0.9 percent to 54.30 euros, SABMiller up 0.2 percent at 2,527 pence, Heineken up 0.7 percent to 41.75 euros and Carlsberg 3.3 percent higher at 460.90 crowns.
3 Апр. 2012