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. ...
Brau Beviale 2012: “sector full of optimism»
New opening days increase number of visitors to 32,810*
A good 100 participants at first European MicroBrew Symposium
32,810 trade visitors (2011: 31,693) were apparently very satisfied with the new opening days of Brau Beviale – now Tuesday to Thursday – and the extensive range of products from the 1,284 exhibitors (2011: 1,384). The beverage industry’s most important capital goods exhibition in the world this year invited internationally renowned regulars and start-ups to the exhibition centre from 13–15 November and served the popular cocktail of high-quality beverage raw materials, innovative technologies, efficient logistics and sparkling marketing ideas.
“The sector is full of optimism – was the headline of an article on Brau Beviale in the daily press. I couldn’t sum up the exhibition any better. Forecasts promise a growing worldwide demand; reason enough for a good mood in the beverage industry – on the exhibition stands, at the European MicroBrew Symposium and, of course, at the Winners’ Night of the European Beer Star Award,” says Rolf Keller, Member of the Management Board of N?rnbergMesse, summing up his impressions.
The typical visitor: male, “habitual offender” and decision-maker38 % of the 32,810 visitors (2011: 36 %) travelled from abroad, mainly from the Czech Republic, Switzerland, Belgium, the Netherlands, Italy, Austria, and Russia. An unbelievable 97 % of the experts were satisfied with the products at the exhibition again this time, as shown by the result of a survey by an independent institute.
The typical Brau Beviale visitor is male (85 %) and a “habitual offender” (almost two-thirds). He therefore visits the exhibition regularly to update on new products and also wants to use these in his own company (more than 64 %). Especially important aspects for the visitors are exchanging views, cultivating existing business contacts and making new ones, training, market orientation, and preparing for investment decisions. A good 4 % of the exhibition visitors also want to sign contracts in N?rnberg, from which the Brau Beviale visitors benefit from another of their typical characteristics: They are highly qualified and 88 % of them are involved in investment decisions. Henning Schlabach, Key Account Sales Director, Sch?fer Container Systems (GER): “Brau Beviale is a contact exhibition for us; the audience was very international again this time. Despite this, we have written many orders.”
The Brau Beviale visitor is also a realist (or optimist?), at least in terms of the platitude “people will always eat and drink”: Only 3 % expect a distinct weakening of business in the sector. He is traditionally mainly interested in the largest product segment of technology (68 %, multiple answers), followed by raw materials (36 %), almost level-pegging with operating and laboratory equipment, energy management, working materials and packaging materials, services, marketing, catering equipment and beverage logistics.
The typical exhibitor: exhausted, but very satisfied96 % of the suppliers of beverage raw materials, technologies, marketing products and logistics, 45 % of them international, rate their success at the exhibition favourably. The exhibitors came from 50 nations, headed by companies from Germany (a good 700), Italy, Great Britain, the Czech Republic, Austria, the Netherlands, Switzerland and Belgium. 93 % made new business connections at the exhibition. 88 % expect good follow-up business from the many contacts made at the exhibition. Renate Scheibner, President of Private Brauereien Deutschland, who was honoured with the Bavarian Beer Medal in 2012: “Nothing is possible without Brau Beviale. Here in N?rnberg I always take a little time off from my duties as president to walk round the exhibition as managing director of the Gl?ckauf brewery in Gersdorf. This time I particularly want to look for information in the raw materials segment.”
A success right from the start: the European MicroBrew SymposiumMore than 100 managing directors, technical managers and master brewers from European microbreweries and pub breweries and supply industry representatives from 17 nations met the day before Brau Beviale. On 12/13 November N?rnbergMesse and Versuchs- und Lehranstalt f?r Brauerei (VLB – Brewery Research and Training Institute) of Berlin organized the first “European MicroBrew Symposium – Market, Trends and Technology”. The one-and-a-half-day symposium dealt with the trend to craft-brewed beers with presentations on the international market, special raw materials, taste, sustainability and the brewing process, plus an excursion. Due to its great success, the symposium will take place annually in N?rnberg in future.
European Beer Star Award 2012 – Consumers’ FavouriteMore than 100 experts judged the 1,366 beers from all continents entered for Europe’s biggest beer competition. The judging took place in 50 categories before the exhibition. The 50 best beers in the world – the gold medal winners – were tasted by several thousand visitors on the first day of the exhibition to choose their Consumers’ Favourite 2012: Gold for “Double Jack” (Imperial India Pale Ale), Firestone Walker Brewery Paso Robles (USA), Silver for “Schimpf Hefe Hell” (Light Wheat Beer), Kronenbrauerei Alfred Schimpf Neustetten (GER), and Bronze for “Weiherer Rauch” (Smoked Beer), Brauerei-Gasthof Kundm?ller Viereth-Trunstadt (GER).
Great international demand for German beverage machineryGerman food processing and packaging machinery – including beverage machinery – leads the world. About a quarter of the globally traded food processing and packaging machinery comes from German production. This leading position gives the manufacturers an average export rate of 85 %. Asia is meanwhile the second most important sales region after Europe. The Verband Deutscher Maschinen- und Anlagenbau (German Engineering Federation) expects another year of growth in 2012 that will at least reach the previous year’s growth rates again. In the beverage machinery segment, which covers beverage production and beverage packaging machinery, the some 100 firms with their 14,000 employees in the core segment increased their production value last year by 8.2 % to 2.04 billion euros. In the first half of 2012 the production value grew by 11.7 % over the comparable value of the previous year to reach 1.14 billion euros. As, for example, components or machinery for PET bottles are statistically reflected elsewhere, total sales in the industry are estimated to be approximately twice as much. The whole food processing and packaging machinery segment with some 600 manufacturers achieved 7.3 % growth in 2011 to reach 10.55 billion euros. The positive trend in the first half of 2012 increased to 11.2 % growth and 5.25 billion euros production volume.
The world is getting thirstier all the timeSome 812 billion litres of packed drinks were consumed worldwide in 2011, more than one-third of them in North, Central and South America and a good quarter in Europe. The global market is shared between non-alcoholic and alcoholic drinks at a ratio of about 70 to 30 %. Experts estimate that the world’s thirst will increase by 3.8 % a year and top 976 billion litres by 2016. Growth drivers are the Asia/Pacific region incl. China and Japan and the Middle East/Africa region with forecast annual growth rates of a good 7 and almost 6 % respectively. Consumption will grow by only 0.7 % in the already excellently supplied industrial nations of Western Europe, compared with 2.3 % a year in Eastern Europe (Euromonitor October 2012).
The event takes a scheduled break next year and Brau Beviale 2014 takes place with a number of changes from 11–13 November.
About the N?rnbergMesse GroupN?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.
All exhibitors and their current product information can be found at:
* The figures for exhibitors and visitors are determined and certified according to the standard definitions of FKM, the Society for Voluntary Control of Fair and Exhibition Statistics.
17 Ноя. 2012