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’s beer market getting greater diversity
"When I go to a foreign restaurant, I have more opportunities to try foreign beer. I want to try everything, not just beers from one country," she says.
People like Choi probably explain the increasing beer imports to a country that in 2010 gulped down 1.95 billion liters of the beverage.
According to data from Korean customs, imports of beer between 2009 and 2011 increased 64 percent in monetary terms to US$58.4 million last year. The market share of such imports increased from 2.05 percent in 2008 to 2.4 percent in 2010. Industry watchers estimate it reached 4 percent last year.
Local retailers have taken the cue. E-Mart, a local hypermart chain, expanded their selection of beers from 70 brands in 2010 to 200 this year to sell a wide range from countries like Brazil, France and Tibet. Jin Jang-min, a PR associate at E-Mart, says young consumers are driving the demand. "Soju is not so popular because it's too strong," she said, referring to the local rice-based liquor. "Young people like beer because it's softer."
Many foreign beers are now available on tap in pubs and bars as draft beer as well. A growing appreciation for draft beer has been driven by an increased sophistication in taste preferences, according to Gubae Kim, the marketing director of German beer importer Bestbuy and Beverage. "Koreans can now distinguish the taste difference of draft beer," he said.
"We think the imported beer market will grow 10-15 percent this year," Kim said. "There's been an enlightenment, an increased awareness of beer."
Beer production in Korea is mostly limited to large corporate-owned mass market brands. Regulations prohibit microbreweries from distributing their own beer unless they meet strict requirements such as a production capacity of 120,000 liters, which involves large capital investment.
Rob Titley, a consulting brewmaster and the founder of Homebrew Korea, says Korea's beer market is skewed because of such regulations. It has "forced people to make their own or to pay high prices for imported beer," he says.
For entrepreneurs like Sung Lee, the CEO of Brewmasters International, a business opportunity was blazingly clear. He was involved in operating brewpubs in New York. His "epiphany" came when he visited Korea in the summer of 2010. "I went dry for one month. I realized I wanted to change the beer culture," he said.
Yet, getting people to understand beer styles still has its limits, according to Lee.
"I'm trying to bring in something different so different styles of beer are represented in the market," he said. It has been a challenge as many pub proprietors are unfamiliar with beer styles. "Education is a challenge. Getting people to try the beer is the hardest thing."
Others have tied their marketing to Korea's growing interest in foreign cuisine and are honing in on neighborhoods with foreign populations and foreign restaurants like Itaewon and Sinsa-dong in central Seoul.
Espressamente Illy coffee shops will introduce Italian beer to three flagship stores this year. Their goal is to introduce the Italian culture of aperitivo, beer with canapes and cheese plates.
Cooking with beer, while common in American and European restaurant kitchens, is relatively new to Korea. Italian Chef Sebastiano Giangregorio of Exclusivo restaurant in southern Seoul in February created a menu using beer as an ingredient. The dishes included Sicilian "arancini" rice balls cooked in beer batter and beef tenderloin with Peroni beer demi-glace sauce. If the dishes prove popular, he plans to add them to his regular menu.
Beer prices are relatively high in Korea due to government taxation that adds 180 percent to the CIF (cost insurance freight) price of beer. Alberto Mondi, brand manager for Peroni Beer, says this is inevitably reflected in the marketing of foreign beers. "Because the taxes are so high, beer has to be marketed as a premium product. We do a lot of branding to ensure Peroni is sold in the right places," he said.
Despite the high prices, demand is there. "Consumers are willing to pay more for new gastronomic experiences. They care less about price and more about quality," says Mondi.
Importer Sung Lee has noticed a pattern as consumers move to foreign beers. He says, "Most Koreans start with sweeter, fruiter German beers then move onto ales such as IPA (Indian Pale Ale) and brown ales." He hopes that lesser known beer styles such as Saison and Trappist ales will become popular.
If none of the tastes on the market satisfies or if the imports are too expensive for one's pockets, there is always make-it-yourself beer.
Titley sells beer making equipment for local homebrewers via his Web site (www.homebrewkorea.com). Since 2008, he has managed an online beer forum and in 2010 launched the annual "Korea Homebrew Competition" in which Koreans and ex-pats enter homemade beers into a blind tasting competition to select the best brews. According to Titley, demand for quality beer is so high that two microbreweries are currently investing in larger capacity facilities to supply consumers and pubs.
3 Апр. 2012