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. ...
Brau Beviale 2012: Tradition, innovation and naturalness
European Beer Star Award and MicroBrew Symposium
Brau Beviale starts a day earlier in 2012 – on Tuesday, 13 November. Some 1,350 exhibitors and a good 31,500 visitors can look forward to the beverage industry’s most important capital goods exhibition in the world this year. Although the event focuses on innovations in the segments of beverage raw materials, technologies, logistics and marketing, N?rnberg also creates impulses for international beverage trends.
In the Chinese horoscope, 2012 is under the sign of the water dragon; a good year, as the dragon is regarded as a lucky charm and symbolizes strength and wealth. The Asian market has enjoyed both these for years. It breaks growth records and produces beverage ideas that have a stimulating impact all over the world. The keywords here are tradition in conjunction with innovation and health. So-called innovative drinks contain ingredients that have long been valued, like tea extracts or elderberry blossom syrup. Regionality coupled with trust in domestic products is doing well under the “back to the roots” aspect. It becomes interesting when drinks create links with other consumption worlds and cross-selling strategies take effect. Also important is that every successful beverage innovation is always supported by a matching container.
Soft drinks more popular than ever worldwide
The global market for soft drinks grew by about 4 % in 2011, mainly thanks to Asia, whose markets accounted for 60 % of the global growth. Asia is currently the biggest player in the soft drinks segment with a share of 27 %. North America holds only just under 20 % and Western Europe 17 %. In 2005, North America still occupied first place with a quarter of global sales. The annual per head consumption in Asia is 40 l. Compared with European and North American consumers, this is only one sixth or one eighth respectively and shows the high future growth potential. Growth can also be expected for soft drinks in Latin America, the Middle East and North Africa. The markets in Western and Eastern Europe are stagnating.
37 % of the soft drinks currently consumed in the world are carbonated. Because some of these contain many calories and still soft drinks are preferred in Asia, the share of carbonated soft drinks could shrink by 4 % by 2016. Bottled water should then be the world’s leading category of soft drinks. Strong growth in the two-figure percentage range is forecast for sport and energy drinks – but starting from a still low level. They account for just 3 % of the global volume of soft drinks (Canadean). In Western Europe, Denmark was the strongest growing market in this segment in 2011, with a per head consumption of approx. 15 l (Euromonitor).
Germany: growth for carbonated drinks, mineral water and medicinal water
The per head consumption of carbonated drinks in Germany rose by 1.6 % to 120.1 l in 2011. Interesting is the large growth of a good 29 % for light lemonades and more than 10 % for near-water drinks (Wirtschaftsvereinigung Alkoholfreie Getr?nke, wafg). The approval of stevia as sweetener offers innovation potential for low-calorie carbonated drinks etc. New products like less sweet orangeade and lemonade with a larger fruit content are in line with the consumers’ wish for more naturalness. Because low-calorie thirst quenchers particularly appeal to women, one manufacturer is testing innovative tea drinks in hairdressing salons. Excitement in the market is provided by near-water drinks, for example with vitamins, coenzymes, zinc or chrome, which are supposed to be good for the health.
Every German drank 134 l (+3.1 %) of mineral and medicinal water in 2011, which means mineral water remained the Germans’ most popular soft drink and the mineral springs sector the biggest employer in the food industry. Carbonated and slightly carbonated mineral water (approx. 43 % each) were drunk most, followed by still (11 %) and aromatized mineral water (2 %), and medicinal water (Verband Deutscher Mineralbrunnen). In order to present mineral and medicinal water better in future, Germany’s first certified water sommeliers recently founded the Vereinigung Wassersommelier-Union (Union of Water Sommeliers) after successfully completing their training at the Doemens Genussakademie.
Italians (175.3 l) and Spaniards (146.2 l) have the biggest thirst for water in Europe. The Germans follow in 3rd place. In the fruit and vegetable juice segment, the Dutch (49.8 l) lead followed by the Germans and Poles (39.6 l each), the Finns (37.8 l) and the British (35.3 l, Euromonitor). The industry is backing drinks with added benefits, e.g. “for healthy cells”, “for the concentration”, “for nerves and muscles” or “for a healthy heart”. Fresh-pressed and – their special feature – non-pasteurized fruit juices that are said to retain all vitamins, nutrients and minerals are also in line with the health trend.
Beer market: two billion hectolitre mark to be topped by 2013
The global beer market is growing – and reached a good 1.9 billion hl (+2.8 %) in 2011. The global per head consumption of beer rose by half a litre to 27.6 l. The American market with a per head consumption of 61.1 l leads Europe (59.3 l) and Asia/Pacific (18 l). Bringing up the rear are Africa and the Middle East (9.1 l, Plato Logic). Global beer consumption is to rise to 2 billion hl by 2013. Asia will also contribute the largest share of this in the future. In China alone, beer sales are to grow to more than 600 million hl by 2016. This means almost twice as much beer is sold in China as in the second largest beer market, the USA (Canadean). Premium beer brands are enjoying ever greater popularity in China and other Asian markets. Their share of Chinese beer consumption reached some 10 % in 2011 (chinabevnews). A strong rise in beer consumption is also expected in Latin America, especially in Brazil (Canadean).
Whereas market researchers assume a slight recovery of beer markets in Eastern Europe by 2016, they forecast slight losses for Western Europe (Canadean). The average West European drank 67.8 l of beer in 2011, the East European 59.4 l – figures that could certainly become similar in future. The Czechs (147.4 l) again had the biggest thirst for beer in Europe in 2011, followed by the Austrians (108.5 l, Plato Logic) and Germans (102 l).
German breweries and beer stores sold a total of some 98.2 million hl of beer – 100,000 hl less than the year before (Federal Statistics Office). Breweries are also backing creative ideas like asparagus beer, a traditionally brewed pilsner to which asparagus juice is added, unusual premium and gourmet beers, forest beer, which is brewed with hops, malt and forest products, or beer for dogs that contains meat extracts instead of alcohol.
US craft brewers show the way – European MicroBrew Symposium
The US market has long since demonstrated that innovative beer ideas are welcomed by consumers. Craft brewers there have achieved one new success after another with a wide variety of creative beer variants. More than 2,000 craft brewers are meanwhile registered in the USA. In 2011 alone, there were 250 new openings as opposed to only 37 closures. Craft brewers brewed about 5.7 % of the US beer volume (+0.7 %) in 2011 (Brewers Association).
A development towards individual, craft-brewed beers can now also be observed in many European countries. This will also become clear at the European Beer Star Award, one of the world’s most important beer competitions, which pays tribute to genuine beers of real character and high quality at Brau Beviale. The first “European MicroBrew Symposium – Market, Trends and Technology” takes up this trend on 12/13 November 2012, immediately before the exhibition. It is organized jointly by N?rnbergMesse and the Versuchs- und Lehranstalt f?r Brauerei (VLB – Brewery Research and Training Institute), Berlin, and is intended for managing directors, proprietors, technical directors and master brewers from European microbreweries and pub breweries, and for representatives from the supply industry: www.vlb-berlin.org/microbrew2012
Package communicates product
An essential feature for all beverage categories worldwide: The product and package must form one unit that communicates perfectly with the planned consumer target group at the point of sale. Experts forecast more growth for PET drink bottles on the world markets. The most recent development projects are in the direction of organic PET bottles, which consist completely of vegetable raw materials and are said to be fully recyclable and suitable for large-scale production. PET bottles have also long since appealed in aesthetic terms. Nevertheless, premium drinks often continue to use glass, and bottles from a star designer are welcome.
In the can segment, the USA leads with an annual per head consumption of 290 canned drinks, a figure that can hardly be topped according to experts. In all other regions of the world, however, the manufacturers expect more growth: more likely in the single-figure percentage range in Europe, but certainly a two-figure amount in Asia, Africa, the Middle East and South America. Cans are also becoming more popular again in Germany. More than a billion drink cans were sold again in 2011, the first time since the introduction of the deposit on disposable containers in 2003. Of interest here are the many possibilities for individual design: digital printing, embossed cans, matt finishes, drink cans that emit fragrances, or cans with integrated “floating capsules”, whose contents are not released until the can is opened. Cans are also capturing new target groups for traditional drinks like cider.
About Brau Beviale
Brau Beviale is the world’s most important capital goods exhibition for the beverage industry in 2012. From 13–15 November (new: Tuesday to Thursday!), over 1,350 exhibitors (2011: 44 % international) present a comprehensive spectrum of high-quality beverage raw materials, innovative technologies, efficient logistics and sparkling marketing ideas in the Exhibition Centre Nuremberg. An unbelievable 98 % of the specialists from breweries and malting houses, producers of non-alcoholic drinks, dairies, winegrowers and suppliers to the brewing and beverage industry were satisfied with the products on display in 2011. A good 31,500 visitors (2011: 36 % international) from technical and commercial management in the European beverage industry are expected at this popular exhibition mix of professional presentation and intensive personal contact.
10 Июл. 2012