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. ...
UK. Minimum price plan to cut drinking
Ministers believe the proposed 45p minimum price for a unit of alcohol will reduce total consumption by 3.3% and cut the number of crimes by 5,000 and hospital admissions by 24,000 each year, with 700 fewer alcohol-linked deaths annually.
Health experts welcomed the proposal, which is 5p higher than the 40p level floated by ministers earlier this year. But the drinks industry warned that responsible consumers would suffer, with wine and spirits prices being pushed up. The 45p minimum would mean a can of strong lager could not be sold for less than about ?1.56 and a bottle of wine below ?4.22.
And the move faces new legal obstacles, after an opinion issued by the European Commission which warns that the 50p price floor proposed in Scotland may breach EU free trade rules by curbing imports and urged the UK authorities to "abstain" from such a measure.
Meanwhile the Institute for Fiscal Studies calculated that the alcohol industry could gain almost ?1.4 billion from consumers as a result of the move, if purchasing patterns were unchanged. Low-income households would take the biggest hit to their wallets and both heavy and moderate drinkers would feel the impact, said the respected economic think-tank.
While the Government's proposals are "unlikely" to affect prices in pubs or restaurants, they would force up the cost of 60% of alcoholic drinks bought at supermarkets and off-licences, said the IFS. Ciders would be most affected, with 85% of off-licence sales seeing an increase from the current average unit price of 31.4p. But shoppers would see price rises to 72% of lagers, 70% of spirits, 46% of wines and 34% of beers.
The change would force up average grocery bills by around 0.9%, but the weekly spend on food and drink would rise by as much as 8.3% in households with incomes under ?10,000 consuming more than 35 units per adult - about 12-15 pints of beer or four bottles of wine.
The IFS said any controls on minimum pricing should be achieved through increased taxation, which would see any increased spending go to the Treasury rather than the industry. But Home Office minister Damian Green said that minimum prices would reduce consumption. Launching a 10-week consultation, Mr Green said: "The evidence is clear - the availability of cheap alcohol contributes to harmful levels of drinking. It can't be right that it is possible to purchase a can of beer for as little as 20p."
Moderate drinkers will spend an extra ?7 per year as a result of the plans, while harmful drinkers would need to find an extra ?118, officials estimated.
The public purse could lose around ?200 million in duty due to falling sales and there would be a ?500,000 bill for enforcing the rules, plus up to ?16.6 million in "transitional" costs for the industry. But savings on health could be worth over ?400 million annually and the reduction in crime nearly ?13 million.
29 Ноя. 2012