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. ...
New event «food & drink technology Africa» takes place for the first time on March 18 and 19, 2014 in Johannesburg
The venue for this first food & drink technology Africa (fdt Africa) is the Gallagher Convention Center. The organizers are Messe Mьnchen International (MMI) and its subsidiary MMI Africa, which is based in Johannesburg. The conceptual sponsor is the Food Processing and Packaging Machinery Association of the VDMA (German Engineering Federation). A two-year cycle is scheduled for this new event, which will initially take the form of a congress with accompanying exhibition, a format that has proven its value and one that was also used in 2007 for the launch of drink technology India (dti) in the Indian city of Mumbai. In terms of content and range, food & drink technology Africa – as the name suggests – addresses not only the beverages industry, but also the food sector. The exhibitors at fdt Africa in Johannesburg will therefore be presenting both beverages technology as well as food and packaging technology.
Alongside its function as a technology showcase, fdt Africa will also be a platform for networking, exchange of expertise and continuing professional development. It will bring mostly global manufacturers of food machinery, beverages technology and packaging machinery together with primarily regional, i.e. South African, manufacturers of foodstuffs, liquid food and beverages.
In terms of the professional development opportunities offered by fdt Africa – as with dti – the event will be targeted specifically to the needs of the regional market, i.e. South Africa. The focus will be on technologies for safe, hygienic and resource-efficient production and packaging of foodstuffs, liquid food and beverages, as well as current developments and trends along the entire value-added chain: from raw materials handling, processing, filling and packaging through to logistics. The conference program will be supplemented by a series of workshops.
Messe Mьnchen MD: "drinktec is strengthened by fdt Africa"
food & drink technology Africa (fdt Africa) is the third international offshoot of the leading world trade fair drinktec in Munich, following on from drink technology India (dti) in Mumbai and China Brew & China Beverage (CBB) in Beijing, both of which are also co-organized by Messe Mьnchen. The strategy of showing a presence in the key markets has proven itself very worthwhile, according to Dr. Reinhard Pfeiffer, the Managing Director at Messe Mьnchen with responsibility for the show: "It strengthens our flagship, drinktec in Munich. Our experience has shown that organizing trade shows or congresses outside Germany always also has positive effects on the events we hold in Munich. Extending the portfolio of drinktec to Africa, and expanding its range to include foods, is the right step and it is a necessary one. Africa is a market of the future, it is a continent with enormous growth potential."
Efficient technology for greater competitiveness
This new involvement in Africa by Messe Mьnchen is strongly supported by the industry. Many of the exhibitors at drinktec in Munich will also be putting on a presentation in South Africa in spring 2014. Volker Kronseder, Chairman of the Board of Krones AG and President of the drinktec Advisory Board, points to the high and increasing level of demand for food and beverages in Africa: "Africa is undergoing a surge in development. Already more than one billion people live on the continent of Africa and by the end of the century that figure is set to rise to 3.6 billion. In other words the population will more than triple. Beverages and foodstuffs will be produced and consumed in Africa and that requires technically solid, efficient and reliable machinery and plant. We can provide this. That is why it is important to present our technology to the market there at food & drink technology Africa 2014."
VDMA: Tapping into enormous potential
Richard Clemens, Managing Director of the VDMA Food Processing and Packaging Machinery Association, is well aware of the significant potential in the region: "The countries in the south of Africa have developed into a very interesting sales market. In South Africa, for example, which has a population of more than 50 million, the beer market is growing at almost eight percent per year. In the food sector, growth is predicted to continue at around three percent per year up until 2017. This is of course coupled with rising demand for modern equipment and state-of-the-art technology for producing and packaging beverages and food. The German food processing and packaging machinery manufacturers are keen to present their spectrum of products and services in the region, because this rising demand for safe and high-quality food and beverages can only be met with efficient machinery and plant. The combination of a symposium and a trade exhibition is, in our view, the right way."
Southern Africa: Growing middle class, rising incomes
Around 130 million people live in the countries of southern Africa, and their average age ranges from 17 in Zambia to 25 in South Africa. As in many other regions around the world, people in southern Africa are drawn to the cities, a shift which also brings with it a change in their patterns of consumption, including food and drink, as they increasingly adopt western standards. A growing middle class and rising incomes also mean a continuation of the upwards trend in spending on food and drink. And here there is a clear demand for ever better quality and higher-value products. Market researchers are expecting that in the countries of southern Africa per-capita expenditure on food (in local currency) will rise by an average of nine to fourteen percent per year in the period from 2012 to 2016. Demand for beer, soft drinks and bottled water will continue to rise in the coming years. Many of the countries of southern Africa have significant agricultural potential. In the coming years they want to expand their agricultural production and in particular to add value in their own country. In this way they hope to both become independent of exports, and to export those products made in their own countries – and for this modern processing and packaging machines are required.
South Africa: Gateway to the whole of southern Africa
South Africa is becoming an ever more important gateway to the markets of the whole of the southern part of the continent. In 2012 5.2 million tonnes of foodstuffs were processed and packaged in South Africa. The largest segments here are dairy products and baked goods, as well as dried, processed foods. Market researchers are expecting volumes to rise in the period from 2012 to 2017 by an average of around three percent per year. Many of the foods and beverages produced in South Africa are also exported to neighboring states. The rising demand for processed and packaged products, and for beverages, is reflected in rising imports of food machinery and packaging machinery from all over the world. Imports into southern Africa have tripled in the period 2001 to 2011 and in 2011 reached a value of 480 million euros.
drinktec is the "World’s Leading Trade Fair for the Beverage and Liquid Food Industry". It is the most important trade fair for the sector. Manufacturers and suppliers from all over the world – global companies and SMEs alike – meet up here with all sizes of producers and retailers of beverages and liquid food products. Within the sector drinktec is regarded as the number one platform for launching new products on the world market. At this event manufacturers present the latest technology for processing, filling, packaging and marketing all kinds of beverages and liquid food – raw materials and logistics solutions included. The themes of beverages marketing and packaging design round off the portfolio.
drinktec 2013, which takes place at the Messe Mьnchen exhibition center in Munich, from September 16 to 20, 2013, is expected to attract around 1,500 exhibitors from over 70 countries and approximately 60,000 visitors from more than 170 countries.
Messe Mьnchen GmbH
drinktec Press Office
Johannes Manger and Benjamin Bьttner
Tel. (+49 89) 949-21482, Fax (+49 89) 949-9721482
10 Апр. 2013