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: Construction of hall 3A starts: time for the excavators
- Digging in: official cutting of the first sod for new hall at N?rnbergMesse with dual partners Lord Mayor Dr. Ulrich Maly and Finance Minister Dr. Markus S?der
- In favour: Free State of Bavaria, City of N?rnberg, N?rnbergMesse and Spielwarenmesse collaborate
- Expanding: Co-Managing Directors Dr. Roland Fleck and Peter Ottmann: “Display space now tops 170,000 m? with investment of 37 million euros!”
3,290 tons of steel, 2,750 m? of glass, 18 months construction time
Building cranes dominate the skyline of N?rnbergMesse yet again. Four of them reach into the sky between halls 3 and 4A. Another quick change of scenery is assured by the short construction time of 18 months, in which the hall is to be erected on an area distinctly larger than a FIFA World Cup football pitch. 3,290 tons of steel (weighing about half as much as the Eifel Tower!) and 2,750 square metres of glass (equivalent to 346,000 glass water bottles) – plus various other materials – are to be incorporated in the building by then.
Before Dr. Ulrich Maly, Chairman of the Supervisory Board and Lord Mayor, buried the bucket of his excavator in the sand, he found the right words for this further expansion of N?rnberg’s exhibition infrastructure: “The success of the N?rnberg exhibition and congress venue radiates over the whole region. The events provide some 20,000 direct and indirect jobs in the city and region and an annual revenue of more than a billion euros, factors that strengthen the economic power in the long term.”
The Deputy Chairman of the Supervisory Board, Dr. Markus S?der, Finance Minister, commented on the construction of hall 3A: “With more than 170,000 square metres of space after the expansion, the exhibition site is almost as large as the Stuttgart and Hamburg sites together!” This investment will make the N?rnberg exhibition and congress venue more important in international competition. “The Free State of Bavaria is like an ellipse with two power centres and two globally operating exhibition companies,” says S?der. “The Bavarian state government as partner of N?rnbergMesse fully supports the expansion of the exhibition site with this hall. This benefits the whole N?rnberg Metropolitan Region!”
In his speech marking the official start of construction, N?rnbergMesse Managing Director Dr. Roland Fleck announced that a million euros more than originally decided is being invested in the new hall: “In the course of the planning process undertaken under great pressure of time, we have recognized and taken advantage of an engineering opportunity to extend the area of the hall by 900 to around 9,000 square metres at very low extra cost. With the approval of the supervisory board, N?rnbergMesse will therefore now invest 37 million euros in the new building instead of 36 million euros!”
Anyone standing on the building site at the south-east corner of the exhibition and congress site would find the construction of the hall as extremely logical: “Hall 3A functions as a hinge between the east connection and a future south line on the one hand and will be the future advertisement for N?rnbergMesse for all those arriving there for events in the ‘exhibition – arena – stadium’ triangle on the other. Three halls can then be used along the Gro?e Stra?e – and a Convention Centre. All the buildings are specimens but the whole is still more than the sum of its parts,” says Dr. Roland Fleck, Managing Director of N?rnbergMesse.
The new hall itself also sets new architectural trends. It was already clear from the impression of the building created by the three-dimensional visualization set up on the building site during the ceremony that the design by Zaha Hadid Architects would be an eyecatcher, a design milestone.
The International Toy Fair has been the accelerating force behind the expansion of the N?rnberg exhibition location right from the beginning. This time it is also the growth of the world’s leading toy fair that provides the motivation for building another hall on the N?rnberg exhibition site: “The International Toy Fair was and is the catalyst for the growth of capacity at the N?rnberg exhibition venue,” says N?rnbergMesse Managing Director Dr. Roland Fleck: “Or in view of the Norisring motor racing circuit in our direct vicinity, let’s call it the ‘turbocharger’ for N?rnberg’s exhibition engine. The outstanding and fair cooperation with Spielwarenmesse eG is certainly currently shown by the construction of this hall, but also by the recent extension of the general agreement between Spielwarenmesse eG and N?rnbergMesse GmbH until 2021.”
“International Toy Fair belongs to N?rnberg”
A statement that Ernst Kick, Chief Executive Officer of Spielwarenmesse eG, confirms: “We are delighted to be here for cutting the first sod for the future of the exhibition site and the exhibition city, because our contractual and financial commitment to the construction of hall 3A emphasizes that the International Toy Fair belongs here in N?rnberg.”
The fact that N?rnbergMesse and Spielwarenmesse eG agree on the necessity for the new hall also benefits other organizers and exhibitions. A new hall for the growth of other exhibitions, such as the combination of HOLZ-HANDWERK and fensterbau/frontale, and later SPS IPC Drives too, but also for additional events for which otherwise space or a date would possibly not have been found. “We are now in the fortunate situation that we have our work cut out accommodating our events during the year but are still able to answer organizers’ inquiries positively,” says Managing Director Peter Ottmann. So the new hall is an expression of the great growth of the N?rnberg exhibition venue? “Yes, not the only International Toy Fair needs the extra space,” Ottmann adds, “the new hall is a blessing for other events too. Not because every exhibition is already so large, but because it enables us to basically increase the utilization of the site by organizing several events at the same time.”
The client for the new hall is N?rnbergMesse, Spielwarenmesse eG provided a loan for it. Ernst Kick, Chief Executive Officer of Spielwarenmesse eG, is particularly pleased that the hall is larger than originally planned. It is namely ten metres longer and now reaches 105 metres (with a width of 85 metres). N?rnbergMesse Managing Director Dr.Fleck is pleased that the extra 900 square metres only cost a million euros more: “I call that an attractive square metre price. This hall 3A is a real investment in the future!”
Joint excavation for the new hall 3A at N?rnbergMesse instead of cutting the first sod by hand: Peter Ottmann, Managing Director of N?rnbergMesse, Jan H?bener of Zaha Hadid Architects, State Minister Dr. Markus S?der, Deputy Chairman of the Supervisory Board of N?rnbergMesse, Lord Mayor Dr. Ulrich Maly, Chairman of the Supervisory Board of N?rnbergMesse, Dr. Roland Fleck, Managing Director of N?rnbergMesse, and Ernst Kick, Chief Executive Officer of Spielwarenmesse eG.
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.
13 Авг. 2012