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. ...
N?rnbergMesse focuses on record revenue in 2012
Joint Managing Directors Fleck and Ottmann aiming for positive result in the double business year 2011/2012
Events in 2012 show higher figures despite ambivalent world economic situation
N?rnbergMesse completed the second best year in the company’s history in 2011, but a look at the current year shows that the past year will not hold its newly acquired status for long. “In all probability, 2012 will outshine 2010, the top year so far. We expect revenue in excess of 210 million euros and profit in the single-figure million range,” say Dr. Roland Fleck and Peter Ottmann, the Managing Directors of N?rnbergMesse.
“2011, a weaker year* in terms of events, shows final revenue of 173 million euros with a net loss of 5.5 million euros for the financial year. The revenue of the private limited company (GmbH) exceeds the originally planned figures by eight per cent. The net loss for the financial year is even a third better than planned,” explains Dr. Roland Fleck, Managing Director responsible for finance. “The good result in 2011 was due mainly to the steady to slightly improving development of the sold display space and the additional services offered, but also to the positive development of the international subsidiaries. For example, the sold space in the group in 2011 was 767,000 m?, which was booked by 25,808 exhibitors,” says Peter Ottmann, Managing Director responsible for marketing.
Altogether 1.11 million visitors attended the 172 exhibitions, congresses, public events and company events in the portfolio of the N?rnbergMesse Group. N?rnbergMesse Brasil, which N?rnbergMesse had only acquired in 2009, contributed to the result for the first time with more than 10 million euros revenue.
Personnel as strategic success factor
To cope with this development, skilled staff and exhibition experts are needed for improving existing exhibitions and creating new events in N?rnberg and worldwide. The staffing level was therefore increased in 2011 in order to maintain the high quality of the existing exhibitions in the portfolio. Moreover, mesomondo was added as another exhibition construction service provider besides Holtmann.
The average number of persons employed in the N?rnbergMesse Group in 2011 was 492 (2010: 442), including 39 apprentices, eleven dual learning (sandwich) degree students and six trainees. The average age of employees at N?rnbergMesse is approx. 37 years. The average period of employment of more than 8 years is higher than the average for the service sector and provides the vital specialist knowledge.
Advantages and disadvantages on the forecasting horizon
Whereas the International Monetary Fund (IMF) talks of “worrying aspects” regarding the future development of the world economy, the figures for the first half of 2012 and the bookings for the exhibitions and events in the second half-year in N?rnberg give no grounds for concern so far. The growth of the sold display space in N?rnberg in the first half of 2012 is five times larger than the growth for the whole German exhibition market (N?rnberg +5 %; Germany +1 %). The figures for exhibitors are also in the positive range, although lower than the German average (N?rnberg +1 %; Germany +3 %). Only the number of visitors declined in the first half-year (N?rnberg -2 %; Germany +1 %).
Record result foreseeable
The Managing Directors also expect good results for the second half of 2012. “We are in the middle of the strongest event year in the history of N?rnbergMesse. Except for POWTECH/TechnoPharm, all the large exhibitions take place as scheduled, none of them take a break,” say the two Managing Directors, Dr. Fleck and Ottmann, explaining the foreseeable record result. Three out of four of the large international exhibitions that take place in N?rnberg in the autumn will grow, some of them even by two-figure amounts. The N?rnbergConvention Center is also well loaded due to new congresses and meetings. Examples of the new events include the German–Russian Raw Materials Conference and the CIHA Congress of the International Committee of Art History, which ended in mid July.
The N?rnbergMesse Group’s calendar for 2012 contains a total of some 210 events. These include more than 60 exhibitions and trade shows, more than 120 congresses, public events or company events, and more than 30 federal and state contracts for pavilions organized by N?rnbergMesse in booming economic regions like Brazil, Russia, China and India.
Besides two new exhibitions in N?rnberg – Enforce Tac and RemaDays – this year’s portfolio is extended mainly by new international events. Four new exhibitions at once on three continents cover the spectrum from beverage technology (InterBev, USA) and the pet industry (Mexico Pet Expo, Mexico, and PET Rio VET, Brazil) to the automotive industry (FISITA, China).
“We are, of course, currently observing development for the business years 2013 and 2014 very closely. Here we notice increased signs of scepticism from the industry on the one hand, but current financial policy decisions are at least contributing towards stabilizing economic development on the other hand. However, I make no secret of the fact that I am extremely concerned about the medium and long-term impact of aspects such as the new possibility for bank recapitalization from the ESM crisis fund,” says Managing Director Dr. Roland Fleck.
About the N?rnbergMesse Group
N?rnbergMesse is one of the 20 largest exhibition companies in the world and among the Top Ten in Europe.The portfolio covers some 120 national and international exhibitions and congresses and approx. 40 sponsored pavilions at the N?rnberg location and worldwide.Every year, around 30,000 exhibitors (international share: 37 %) and up to 1.4 million visitors (international share of trade visitors: 21 %) participate in the own, partner and guest events of the N?rnbergMesse Group, which is present with subsidiaries in China, North America, Brazil and Italy.The group also has a network of 46 representatives operating in 97 countries.
*Some of the exhibitions at N?rnbergMesse take place every two years, which means the even years always have more events than the odd years.
30 Июл. 2012