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3-2019

Russia: Positions of Brewing Companies

The 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 brands

In 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 2019

During 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.

UK. Banned at home, Pakistan brewery seizes Hollywood moment

What have Demi Moore, Bruce Willis, underage drinking and Pakistan's only beer maker got in common?

It was the arrest of the Hollywood stars' daughter in New York with a can of Murree Brewery's (MUBR.KA) beer last June that propelled the company out of obscurity and into the spotlight.
Inundated with emails asking about its beer, Murree Brewery seized on the free publicity to launch expansion plans outside the Muslim nation, where alcohol is banned and those that do drink can become targets of Taliban militants and other Islamist fundamentalists.

Five months since the arrest, the 150-year-old company says it has lined up distributors that could see its flagship beer arrive on liquor store shelves in the United States and Dubai as early as the first quarter of next year.

"Demi Moore and Bruce Willis' daughter gave us multi-million dollars worth of publicity by default. We plan to go to the United States and make a queue to hug both the daughter and the mother," Sabih ur Rehman, special assistant to the chief executive, joked with Reuters.

Murree Brewery, established in 1860 by British colonial rulers to supply beer to their troops, is desperately looking for business overseas to hedge against its uncertain domestic market. Prohibition was imposed in Pakistan in 1977, and non-Muslims and foreigners must obtain a government permit to purchase alcohol at designated retailers, mainly upscale hotels.

It also produces a line of juices and non-alcoholic drinks, but is prohibited from advertising its beer, whisky, gin and other liquor products.

Relying on word of mouth and an influx of thirsty diplomats and foreign investors, annual alcohol sales have grown an average of 20 percent over the past five years, reaching $26.8 million (16.9 million pounds) in the 2012 financial year. The company's stock is up 175 percent so far this year, trading at 160 rupees on November 13, far outpacing the 42 percent rise in the Karachi Stock Exchange .KSE benchmark 100-share index.

Despite its strong sales, the company's net profit after taxes rose a mere 1 percent year-on-year to 525 million Pakistan rupees (3.45 million pounds) for the year ended June 30, due to an increase in alcohol taxes and rising labour costs.

LIVING IN FEAR

Murree Brewery's chief executive, Isphanyar Bhandara, lives in constant fear that authorities will shut down alcohol production at any moment as Pakistan drifts towards a more conservative interpretation of Islam.

"Pakistan is moving more and more to the right. That is not good for Pakistan and not good for us," said the 39-year-old executive at his office in Rawalpindi, a military city just outside the capital, Islamabad

"Each day we are allowed to survive, that is a blessing."

The brewery, which employs 1,100 people, is located within the headquarters of the Pakistani Army and across the street from the residences of the country's top military commanders, making it arguably the most protected brewery in the world.

To ensure survival, it has turned to a European brewery to produce its beer for overseas consumption due to a government ban on alcohol exports, which was eased just recently.

The Pakistani brewery said it has reached an agreement with the Czech Republic's Zatec Brewery initially to produce at least 5,000 cases, each containing 24 bottles of Murree Beer, annually from next year. That amount will double in 2015, Rehman said.

However, the managing director of Zatec Brewery, Martin Kec, said he knew nothing of this arrangement and his firm had only produced a very small amount of Murree Beer in the past.

Murree Brewery also said it has lined up distributors in Texas, Dubai and Denmark to market and sell its lager under franchise agreements, and is looking for partners in Britain and other European countries. "We are virgins and we are looking for husbands," said Bhandara, whose family is from the country's non-Muslim Parsi minority.

But Murree Beer faces a difficult road as a new player in the crowded U.S. and European markets, dominated by the industry's "big four" -- Anheuser-Busch InBev (ABI.BR), SABMiller (SAB.L), Heineken (HEIN.AS) and Carlsberg (CARLb.CO).

The company's last attempt to break into Western markets failed after it was forced to end its partnership with an Austrian brewery due to high costs and logistical problems.

Analysts say a few tabloid headlines will not be enough to be successful and Murree will also need a multi-million-dollar promotional campaign. It is also unclear the type of consumer they are trying to sell their beer to, since most Pakistanis living abroad are Muslim and unlikely to drink alcohol.

"They are never going to be anything but a very niche player. It's unlikely they will be able to push as hard as major brewers with their own niche lagers," said a London-based stock analyst, who asked not to be identified because he did not cover Murree Brewery.

But company officials are hopeful, particularly for the U.S. market. "Americans will drink anything. They are like fish," Rehman said.

16 Ноя. 2012

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