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3-2019

Russia: Positions of Brewing Companies

The 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 brands

In 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 2019

During 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.

US. GR Brewery Announces $26 Million Expansion

Founders Brewing Co. in Grand Rapids is moving forward with a $26 million expansion.

The Right Place, a regional non-profit economic development organization, in collaboration with The Michigan Economic Development Corporation (MEDC) and The City of Grand Rapids has announced the approval of $2 million of a Michigan Business Development Program performance-based grant with repayment terms for Grand Rapids-based Founders Brewing Co.

The grant allows the brewery to move forward with its expansion, , which is expected to create 52 new jobs for the area over three years. The positions will range from managerial to service, with the bulk of positions being in the operations and services sector.

“Founders Brewing Co. is a shining star in Grand Rapids, not only from a consumer standpoint but also with regard to economic development,” said Susan Jackson, Senior Business Development Manager, The Right Place, Inc. “This expansion confirms that Grand Rapids continues to find a niche in the craft brewing industry. We are pleased to help Founders Brewing Co. grow in Grand Rapids.”
“The craft beer market continues to grow,” said Mike Stevens, President and CEO, Founders Brewing Co., “and demand for Founders beers has caused our growth to outpace average industry growth. Meeting this demand requires a significant upfront investment in additional facility area and, more importantly, in additional equipment. We are grateful for this incentive assistance, which will allow us to keep up with demand and to be in a position to hire more people to help us grow the brewery.”

In just five years since moving to its Grandville Avenue location, Founders Brewing Co. has increased production and taproom sales to a point where demand requires this expansion.

Demand for the expanded facility will be supported by Founders Brewing Co.’s existing network of 62 distributors across 23 states and new distributors in new markets.

Over $22 million of the $26 million expansion will be used for purchase of new brewing and fermenting vessels and other equipment, while nearly $4 million will be spent on expanding the brewing facility, located at 235 Grandville Avenue in downtown Grand Rapids. Once complete, the brewery will have capacity to produce approximately 300,000 barrels of beer annually, or four times its current capacity.

The expansion will occur in phases, the first of which consists of expanding the brewery’s fermentation hall.

The City of Grand Rapids has also recently offered a 12-year property tax abatement valued at approximately $300,000 for the project.

20 Дек. 2012

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