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. ...
Closing Report CBB: Co-organizer of drinktec gives a strong boost to China Brew & China Beverage
CBB?s reputation grew once again with the 2012 event, a fact clearly reflected in the visitor survey initiated by MMI Shanghai. Of the 424 visitors surveyed, almost all of them, close on 100%, said they would recommend CBB to business partners. 97% said that the next edition of CBB, in two years' time, is now a firm date in their diaries; 95% rated the 2012 event as "good to excellent".
As such CBB is right on track to becoming the Number 1 trade show for the beverage and liquid food industry for the East Asian market. Wang Xin General Manager, Beijing Zhongqing Heli Machinery Equipment Co. Ltd, praised the intercultural interplay between the participating organizers from China and Germany: "CBB 2012 is a great success. We had plenty of positive feedback from the trade visitors and also from the Chinese and international exhibitors. This success is the outcome of the cooperation between the China National United Equipment Group Corp. and the Beijing Zhongqing Heli International Exhibition Co. Ltd on the one hand and Messe M?nchen and its subsidiary MMI Shanghai on the other. I would like to convey my thanks for the support from the industry and from our friends and colleagues and for the hard work that the entire CBB team has put in."
Dr. Reinhard Pfeiffer, Managing Director of Messe M?nchen International, sees CBB 2012 as the start of a long-term strategic cooperation. "This CBB has laid the foundation stone for a Munich-Beijing axis. Every four years, drinktec in Munich brings together the entire beverage and liquid food industry from the whole world, while CBB serves the most important market in Asia over a two-year cycle. This grouping strengthens the two trade fair organizations but above all it offers benefits to our customers, the exhibitors and the visitors. Our common aim is to continue to reinforce and extend this axis. The contract with our Chinese partners runs until 2024. This gives us plenty of time yet and a lot of scope for further growth."
Despite all the cultural differences and reservations, the organizers from Germany and China have never lost sight of their aim, according to Petra Westphal, Exhibition Group Director at Messe M?nchen with responsibility for drinktec. She says: "In just twelve months two cultures and two trade fair organizers have grown together and have achieved something tremendous. This can only happen if all concerned pull together, are ready to compromise and respect one another. CBB 2012 is a model of successful cultural collaboration."
Volker Kronseder, Chairman of the Board of Krones AG and President of the drinktec Advisory Board, and as such a representative of the exhibiting industry, also praised the collaboration between drinktec and CBB: "This sets the standard for our sector, especially in such an important market as China. It is important for the international exhibitors that the cooperation with drinktec assures a certain level of quality, including as regards service and infrastructure. In this respect there have already been noticeable improvements at CBB 2012."
In the view of Richard Clemens, Managing Director of the Food and Packaging Machinery Manufacturers Association (Fachverband Nahrungsmittelmaschinen und Verpackungsmaschinen) affiliated to the VDMA (Germany’s Engineering Federation), CBB has continued its record of success by moving to the new exhibition center, the NCIEC, and has set new standards. "By cooperating with Messe M?nchen, CBB now has a strong partner on its side for further internationalization and professionalization. It has established itself as the most important platform for China and is right on track to become the Number 1 sector hub for Southeast Asia.’
In August 2011 Messe M?nchen GmbH (MMG), as the organizer of drinktec, and its Chinese subsidiary MMI Shanghai, signed a treaty of cooperation with the Beijing Zhongqing Heli International Exhibition Corporation (BZHC), as the organizer, and China National United Equipment Group Corporation (CNUE), as the license-holder of CBB. Since then, drinktec has been a co-organizer of CBB. The drinktec team is the contact and contractual partner for all the international, i.e. non-Chinese exhibitors at CBB. The area of responsibility comprises the acquisition of these exhibitors and giving them advice and support before and during CBB (see also the drinktec press release no. 7).
Further information on CBB:
Further information on drinktec:
Contact China Brew & China Beverage (CBB)
Tel: (86 10) 66085371/ 66017874
Fax: (86 10) 66018904
e-mail: [email protected]
Contact MMI Shanghai
Tel. (+86 21) 2020 5500
Fax (+86 21) 2020 5666
e-mail: [email protected]
Contact drinktec, Messe M?nchen
Messe M?nchen GmbH
drinktec Press Office
Johannes Manger and Benjamin B?ttner
Tel. (+49 89) 949-21482
Fax (+49 89) 949-20689
e-mail: [email protected]/
2 Ноя. 2012