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. ...
US. Nine Beers Americans No Longer Drink
While sales of specialty, craft, and small-market beers have improved dramatically, many of the traditional, full-calorie beers that were once the staples of most breweries have fallen behind. In the five years ending in 2011, sales of Budweiser, which was once the top-selling beer in the country for years, have fallen by 7 million barrels. Sales of Michelob are down more than 70%. Based on data provided by Beer Marketer’s INSIGHTS, 24/7 Wall St. reviewed the nine large — or once-large — beer brands with a five-year decline in sales of 30% or more.
While regular, full-calorie beer was once the mainstream, now light has become the primary beer of choice. Budweiser, once by far the most popular beer, has now fallen to third place in domestic sales, with 17.2 million barrels shipped in 2011, compared to Coors Light’s 17.4 million. The U.S. beer leader is, by a long shot, Bud Light, with 39.15 million barrels sold last year.
Budweiser did not quite make the 30% decline in sales cutoff for our list, but many other traditional brews did. Old Milwaukee, Milwaukee’s Best and Miller Genuine Draft have all lost 50% of their sales since 2006. Michelob shipped 500,000 barrels domestically in 2006, but sold just 140,000 in 2011.
While light beer has supplanted full-calorie beer in popularity, sales of most leading light brands have been flat over the past several years. In fact, many of the beers on our list with the biggest declines are light beers that either didn’t catch on or faded out of popularity. In an interview with 24/7 Wall St., Beer Marketer’s INSIGHTS executive editor Eric Shepard explained that it is specialty beers and craft beers — not light beer — that have eaten into sales of traditional full-calorie beer in the past year.
Shepard explained that like most major brand-centered industries, the beer industry has entered a period of aggressively marketing new brands and flavors. “I think that part of the reason that brewers felt we had three down years was primarily the economy… but it was also a lack of innovation, and so now you’re seeing [the beer industry] rev up these things,” he said. “The buzzword for this year was innovation.”
To combat the growing popularity of craft brews, major breweries such as Anheuser-Busch Inbev (NYSE: BUD) and MillerCoors have aggressively marketed their own specialty beer. Bud Light Platinum, which debuted during the Super Bowl, has been very successful, beating most expectations. Shock Top, also produced by Anheuser-Busch, sold 600,000 barrels last year, more than double the previous year’s sales. Another Belgian white beer, Blue Moon, which is sold by MillerCoors, was the 18th-most popular beer last year. Shepard expects the focus on nontraditional brews to continue at least through next year. This will likely further reduce sales of the declining brands on our list.
24/7 Wall St. identified the nine beers Americans no longer drink based on INSIGHTS top 50 beer brands with at least 500,000 barrels in sales in either 2006 or 2011 with sales declines of 30% or more over the same period. Sales for flavored malt beverages and craft beers were excluded from the analysis.
These are the nine beers Americans no longer drink.
9. Milwaukee’s Best Light
> Sales loss (2006-2011): 35.5%
> Brewer: MillerCoors
> Barrels sold (2011): 1.2 million
Milwaukee’s Best Light, according to SABMiller, one half of MillerCoors, is a “leading low-calorie beer in the near-premium segment.” Although the brand has been on shelves since 1986, in recent years customers have abandoned the beer. Sales volume dropped by more than a third between 2006 and 2011, versus a decline of just 4% for all top brands. Last year, Milwaukee’s Best Light sold 750,000 barrels, 5.8% less than in 2010. Meanwhile, sales for the top brands fell by just 1.7% during that time.
8. Miller High Life Light
> Sales loss (2006-2011): 37.6%
> Brewer: MillerCoors
> Barrels sold (2011): 390,000
Miller High Life Light was first sold in 1994 as the low-calorie version of Miller High Life, often referred to as “the champagne of beers.” But while customers have continued buying the original Miller High Life — sales declined just 3.6% between 2006 and 2011 — they have deserted the light version — which saw sales decline by more than ten times that number. In 2011, sales fell by 80,000 barrels, or 17%, from 2010.
7. Amstel Light
> Sales loss (2006-2011): 47.7%
> Brewer: Heineken
> Barrels sold (2011): 340,000
Debuting in 1980, Amstel Light claims to have been the first imported light beer available in the U.S. The brand, brewed by Heineken, is the only imported beer, as well as the only beer not brewed by Anheuser-Busch InBev or MillerCoors, on this list. Neither of these brewers experienced a sales decline as large as that of Heineken between 2010 and 2011, when U.S. sales volume fell by 3.9%. One cause was Amstel Light sales, which fell by 13.9% — more than any other major Heineken brand.
6. Miller Genuine Draft
> Sales loss (2006-2011): 52.3%
> Brewer: MillerCoors
> Barrels sold (2011): 1.6 million
Miller Genuine Draft, marketed as having “the fresh taste of draft beer in a bottle,” has lost consumers’ attention in recent years. It was one of just six beers that had sales volume fall by half between 2006 and 2011. During this time, the total number of Miller Genuine Draft barrels sold fell by 1.7 million, more than any other beer on this list. Only one other brand bottled by MillerCoors — Miller Lite — had a larger decline in barrels sold over this time span.
5. Old Milwaukee
> Sales loss (2006-2011): 52.8%
> Brewer: Pabst Brewing Company
> Barrels sold (2011): 460,000
Old Milwaukee is brewed by the Pabst Brewing Company, which sold itself to C. Dean Metropoulos — described by The New York Times as “a veteran food executive known for corporate turnarounds” — in 2010. Last year, the Chicago Tribune reported that employees felt Metropoulos’ marketing plans were moving the company away from the philosophies and practices that made it successful. From 2010 to 2011 alone, sales decreased by 12.4% — worse than 80% of top brands.
4. Milwaukee’s Best
> Sales loss (2006-2011): 57.1%
> Brewer: MillerCoors
> Barrels sold (2011): 750,000
MillerCoors claims that Milwaukee’s Best is “brewed for a man’s taste,” and is “highly drinkable [and] highly affordable.” However customers have stopped buying — and drinking — the brand. Between 2006 and 2011, no major brand made by MillerCoors had a larger percentage decrease in sales. The beer is one of the worst-ranked brews on BeerAdvocate.com.
3. Budweiser Select
> Sales loss (2006-2011): 60.8%
> Brewer: Anheuser-Busch InBev
> Barrels sold (2011): 775,000
Budweiser Select, introduced in 2005, claims to offer a “distinctively full flavor,” with just 99 calories per 12-ounces — roughly the same as Michelob Ultra. The brand has not sold well since its introduction, with sales declining by 1.2 million barrels between 2006 and 2011 — more than all but a few top brands. In 2009, Anheuser-Busch InBev also introduced Budweiser Select 55, which the company describes as “the lightest beer in the world with fewer calories than any other beer option currently available.”
2. Michelob Light
> Sales loss (2006-2011): 66.3%
> Brewer: Anheuser-Busch InBev
> Barrels sold (2011): 425,000
From 2006 to 2011 shipments of Michelob Light fell by 66.3%, more than any other major light beer in the U.S. While sales of Michelob Light declined, sales of Michelob Ultra — introduced in 2002, with just 95 calories per 12 ounces — rose by 10.3% from 2006 to 2011. Anheuser-Busch InBev no longer prominently markets the beers on its websites alongside the better-selling Michelob Ultra. Between 2010-2011, sales of Michelob light fell by 19%, more than all but two of the top brands we reviewed.
> Sales loss (2006-2011): 72.0%
> Brewer: Anheuser-Busch InBev
> Barrels sold (2011): 140,000
American consumers have abandoned Michelob — a lager brewed since 1896 — at a faster rate than any other beer. From 2006 to 2011, sales declined from 500,000 barrels to 140,000, with a 20% drop between 2010 and 2011 alone. No other beer on this list sold less than Michelob. The next-lowest selling beer, Amstel Light, still sold 200,000 barrels more than Michelob last year. The brand has not always struggled. According to Beer Marketer’s INSIGHTS’ Eric Shepard, “the superpremium category — basically between Budweiser and the imports — Michelob pretty much had that to itself for many years.”
Michael B. Sauter and Alexander E.M. Hess
10 Дек. 2012