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. ...
SABMiller Joins Bond Rush in Europe as Credit Markets Rally
The world’s second-biggest brewer issued the notes due January 2020 to yield 70 basis points more than the swaps rate, according to people familiar with the deal. Debt issuance will top at least 16.4 billion euros this week, the busiest since Sept. 16 and above the year’s weekly average of 14 billion euros.
Companies are taking advantage of a rally that pushed the cost of insuring the region’s bank debt to near the lowest in 16 months as they raise funds before the holiday period. Corporate bonds in Europe yield a record low 2.2 percent, Bank of America Merrill Lynch’s EMU Corporate index shows.
“These are the last weeks before the holidays, so the last chance to issue this year,” said Harold Van Acht, senior credit analyst at Kempen Capital Management NV in Amsterdam. “Both absolute yield and credit spread levels are generally attractive for issuers and investors still want to put cash to work.”
London-based SABMiller last sold bonds in euros in July 2009 when it raised 1 billion euros of notes due January 2015 priced to yield 170 basis points more than the benchmark swaps rate, according to data compiled by Bloomberg.
TeliaSonera, Sweden’s largest telephone company, sold 400 million pounds ($641 million) of bonds due in 30 years, its first deal in the currency, at a spread of 135 basis points more than gilts, according to people familiar with the transaction. British security provider G4S marketed 500 million euros of six- year bonds at 167 basis points more than swaps.
Also in the market for the first time is German power company Bilfinger, offering 500 million euros of seven-year bonds that will yield 115 basis points more than swaps. The securities were initially marketed with a spread of about 135 basis points.
Bonds of Spanish utilities Iberdrola SA (IBE) and Gas Natural SA were the best performers today in Bank of America Merrill Lynch’s EMU Corporates Non-Financials index. The yield on Bilbao-based Iberdrola’s 4.125 percent notes due 2020 fell 12.3 basis points to 250 basis points more than benchmark German government debt. That’s the smallest gap since March 23. The spread on Gas Natural’s 5.125 percent 2021 notes shrank seven basis points to 384.
Credit-default swaps insuring Spanish government debt fell as much as 12.5 basis points to 277, approaching the lowest level in 16 months. Contracts on Italy dropped as much as 11 basis points to 236, the lowest since Oct. 18.
The Markit iTraxx Financial Index linked to senior debt of 25 European banks and insurers dropped five basis points to 159 at 3 p.m. in London, approaching the lowest in 16 months. The subordinated index fell six basis points to 279.
The Markit iTraxx Crossover Index of swaps on 50 companies with mostly junk credit ratings declined 14 basis points to 493. The Markit iTraxx Europe Index of contracts on 125 companies with investment-grade ratings dropped three basis points to 122.
A basis point on swaps contract a protecting 10 million euros of debt from default for five years is equivalent to 1,000 euros a year. The derivatives pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements.
30 Ноя. 2012