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. ...
Suntory to list food and soft drinks unit in up to $6 bln IPO-sources
* Japan IPO will raise 400-500 billion yen - sources
* Funds to be used for overseas acquisitions - Nikkei
By Emi Emoto
TOKYO, Dec 12 (Reuters) - Japan's Suntory Holdings Ltd plans to raise up to $6 billion in an initial public offering of its food and non-alcoholic drinks unit, said people with knowledge of the matter, as it looks to build funds for overseas acquisitions.
Japanese drinks firms including Suntory, Kirin Holdings Co Ltd and Asahi Group Holdings Ltd have aggressively chased expansion abroad, including through acquisitions, to be less dependent on a shrinking home market.
The maker of C.C. Lemon soft drinks and Yamazaki single malt whisky aims to more than double sales at the food and beverages unit, which does not include alcohol, to 2 trillion yen ($24.3 billion) by 2020 from 960 billion yen last year.
Suntory Beverage and Food Ltd plans to list in Tokyo in the second half of 2013, raising 400-500 billion yen ($4.9 billion-$6.1 billion), said the sources, who did not want to be identified as the plan was not public. The Nikkei newspaper earlier reported that unlisted Suntory would use the IPO funds for overseas acquisitions.
"Many of the European consumer staples have been struggling in their home markets ... and as a result there may be fire sales," said a consumer goods analyst at a foreign investment bank in Tokyo, who declined to speak on the record as the bank doesn't cover Suntory.
Britain's Sunday Telegraph newspaper reported last weekend that Diageo Plc and Suntory held talks about a joint $10 billion bid for Jim Beam bourbon maker Beam Inc, and the Japanese group has also been reported to have an interest in Danone SA's water business.
So far this year, Japanese firms have spent a record $83.8 billion on outbound mergers and acquisitions, one fifth more than a year ago, according to Thomson Reuters data.
CHANGES AT HOME
Japan's ageing population, uncertain long-term outlook and constant deflation have weighed on a fragmented beverage sector, increasing talk of consolidation as leading consumer goods firms chase market share. Japan's beer market shrank by more than 15 percent in volume shipments in the last decade.
Earlier this year, Asahi completed a $1.5 billion deal for milky drink maker Calpis, and Sapporo Holdings Ltd last year paid more than $500 million for canned beverage maker Pokka Corp, in two of the larger recent domestic drinks deals.
With Japan sales likely to be pressured further on government plans to increase the sales tax to 8 percent in 2014 and to 10 percent in 2015, from 5 percent now, restructuring is more likely, increasing investor interest in Suntory.
"This is just an assumption, but, for example, if Suntory considers buying businesses which do not overlap theirs, such as (Japanese) milk beverages and canned coffee, and sees it as part of its growth strategy, (the stock) would be interesting," said Yasuo Sakuma, chief executive of Bayview Asset Management, which had 130 billion yen ($1.6 billion) of assets under management as of end-September.
Suntory, Japan's No.2 soft drink maker behind local bottlers for Coca-Cola Enterprises Inc, explored a merger with Kirin before talks broke down in 2010.
SUNTORY TO KEEP STAKE IN UNIT
Suntory, which traces its roots to the late 19th century and a small Japanese wine production business, grew in the 1920s with the country's first malt whisky distillery, and began brewing beer in the 1960s. The Osaka-based firm bought soft drinks maker Orangina Schweppes for more than 300 billion yen in 2009, and a year later acquired the Western Europe rights to the Sunny Delight fruit drink. Last year, it entered into a joint venture with Indonesian food and beverage group GarudaFood.
The food and non-alcoholic beverages business accounts for around half the group's total sales, according to the company's website. At end-June, the group had cash and deposits of 225 billion yen ($2.73 billion).
After the IPO - which would be Japan's biggest since Japan Airlines' $8.5 billion re-listing in September - Suntory plans to retain a sizeable stake in Suntory Beverage and Food, whose businesses include making tea and juices and distributing PepsiCo Inc beverages and chilled drinks for Starbucks Corp, the sources said.
Asked about the possible IPO, a Suntory spokeswoman said nothing had been decided.
Japan has seen 47 IPOs so far this year, raising $11.5 billion in total, with JAL accounting for nearly three-quarters of that. In the same period, Asia IPOs, excluding Japan, totalled $38.1 billion, less than half year-ago levels, according to Thomson Reuters data.
12 Дек. 2012