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. ...
Kirin Follows Heineken With $2.2 Billion Offer; Shares Tumble
Kirin is seeking to acquire Fraser & Neave Ltd.’s food and beverages unit as part of a proposed takeover of the Singapore- based company by a group led by Overseas Union Enterprise Ltd. (OUE) The OUE group offered S$13.1 billion for F&N yesterday, topping a bid from Thai billionaire Charoen Sirivadhanabhakdi, and said Kirin will buy the food and beverage unit.
Shares of Kirin tumbled the most in a year today on concern whether the investment will pay off. The Tokyo-based company, which generates a higher percentage of sales from overseas than any other Japanese drinks maker with revenue exceeding $1 billion, is seeking further expansion abroad as demand weakens at home and growth at its Australian unit stutters.
“Investors are now worried,” Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co. in Tokyo, said by telephone today. “They’re concerned whether it will turn out to be expensive shopping without rewards.”
Kirin, which owns a 14.8 percent stake in F&N, will tender its shares to OUE and won’t accept any competing proposal, OUE said. Kirin is “aware of the announcement,” Kan Yamamoto, a spokesman, said by telephone. He declined to comment further.
Kirin fell 2.6 percent to 965 yen as of 10:28 a.m. in Tokyo trading. The stock earlier dropped 4.7 percent, headed for the largest decline since November last year. The drinks maker’s shares have lost 33 percent in the past three years, compared with a 13 percent decline for the broader Topix index.
The company cut its 2015 sales forecast in October, citing weakening demand in Japan as a reason. Industrywide beer sales in Japan fell 3.7 percent to 442 million cases last year, the lowest level since records began in 1992.
Heineken got shareholder approval in September to buy F&N’s stake in its brewing joint venture, Asia Pacific Breweries Ltd. (APB), giving it full control over sales and distribution of its brands and F&N’s Tiger beer brand in Southeast Asia. Heineken had been spurred to increase its original offer for APB after Charoen purchased shares in F&N and APB.
Kirin had been considering a bid for the F&N food and drink unit in July, three people with knowledge of the situation said at the time, after Heineken’s initial bid for APB.
The Japanese company also has a 48 percent stake in the Philippines’ San Miguel Brewery Inc. In November last year, Kirin agreed to buy out shareholders in Brazil’s Schincariol Participacoes e Representacoes to diversify its beer sales footprint. The deal at the time valued the brewer at about $3.6 billion, excluding debt.
Leuven, Belgium-based AB InBev, the world’s biggest brewer, agreed to buy control of Mexico’s Grupo Modelo SAB for $20.2 billion this year.
F&N has been in the food and beverage business since 1883, producing soft drinks, milk drinks, ice cream and isotonic drinks under F&N Foods Pte. and Malaysia’s Fraser & Neave Holdings Bhd. (FNH), according to its website.
16 Ноя. 2012