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. ...
Technology showcase drinktec now also a marketing hub
showcase, drinktec has therefore now taken on another function: as a marketing interface.
Lack of communication between marketing and technology departments is a
common reason for the failure of product launches. This is also true in the
beverage and liquid food industry. The idea behind the Innovation Flow Lounge
(IFL) was to bring both sides together and promote dialog between them again.
And that has been achieved, as the results of the visitor survey at drinktec 2013
has shown. Of the drinktec visitors who showed interest in the Innovation Flow
Lounge, 38 percent were mainly involved in the field of marketing, 36 percent
were from the technology side. Petra Westphal, the Exhibition Group Director at
Messe M?nchen responsible for drinktec 2013, sees this as proof "that we have
achieved our goal of creating a discussion and meeting platform that has been
accepted by both sides. The need for such an ideas forum is evidently there. As
such we have clearly hit the bull?s eye and we will be developing this project
further with a view to drinktec 2017."
88 percent of the visitors to the Innovation Flow Lounge rated its benefit to them
as "excellent to good", twelve percent of the total of 66,886 visitors to drinktec
declared that for them the Innovation Flow Lounge had basically been an
interesting feature. The fact that drinktec 2013, with the support of the new
Innovation Flow Lounge, had been able to attract more visitors than ever from
the area of marketing, was reflected clearly in the exhibitor survey. 78 percent
stated that they had reached the target group of marketing/advertising/PR, 86
percent said the same of the target group of sales. And as many as 89 percent
of the surveyed exhibitors had welcomed at their stands managing directors and
operations directors – in small companies these are often the ones who also
take the marketing decisions.
The Innovation Flow Lounge was held on four of the five days of drinktec 2013,
and each of the days was dedicated to a particular theme, developed and
implemented by the partners of the IFL – KRONES, RASTAL , KHS and
FoodBev Media. "Idea – Process – Success" was the motto of the first day.
Krones AG put on an exciting program on the subject of beer marketing.
POSitive Thinking – that was the motto taken by IFL partner Rastal for its theme
day, concentrating on ways of boosting sales at the point of sale. IFL partner
KHS chose the theme of packaging intelligence for its theme day, and, on the
fourth day, the British publisher Foodbev Media put on panel discussions and
talk sessions on the subject of how to successfully launch a product on the
market. Their motto was "Beverage Innovation – creating a successful product".
In a range of "action modules" such as the IDEArena, the Talking Table and the
5-o?clock Theme, the focus was on information, exchange and networking.
Many prominent names from the world of beverages and marketing came along
to take part in this "talkshop". The wheat-beer brewers Georg Schneider and
Jeff Maisel discussed with other experts the booming craft beer scene. Jorge
Grabmeier from Becker?s Bester and Nils Lorbeer from Campari were among
the panel discussing "Top it off with something good! Promotion extras for
beverages". High-ranking experts were also attracted to the Innovation Flow
Lounge to discuss packaging intelligence, among them Geert Mars? from Coca
Cola and Myriam Shingleton from Carlsberg. And in the Innovation Flow Lounge
finale FoodBev media director Bill Bruce welcomed marketing experts such as
Markus Lotsch from Wild and Olli Graham from Rexam. The highlight of this day
was the presentation of the Beverage Innovation Awards.
One of the biggest attractions on all the five days of the fair was the Beverage
Innovation Bar. Here the visitors to the Innovation Flow Lounge had the chance
to try out innovative drinks from all over the world, and from all segments of the
drinks industry. For example "Wake Up" from Israel, with guarana, gingko
biloba, patented fructose and elderberry. And "Nutralic", a functional protein
drink from Denmark. Coca Cola?s "Freestyle Drink Machine", which mixed 100
different beverages from this soft drinks giant, was in more or less permanent
For some visitors to drinktec the Innovation Flow Lounge was already on their
list of things to visit at drinktec, others discovered the orange-colored talkshop at
the West Entrance quite by chance as they were passing. The slogan of
"Marketing meets technology" certainly made many curious. One visitor
described the IFL quite neatly as: "Something to take home that?s different."
Another commented: "Any innovative product needs a market and needs to
know how to get in the market." Clearly he had understood perfectly what the
Innovation Flow Lounge was all about.
Testimonials of the IFL partners:
Prof. Matthias Niemeyer, Chief Executive Officer of KHS GmbH, in charge
of technology and development: "By establishing the Innovation Flow Lounge
drinktec 2013 took an important and innovative step. Familiarizing marketing
experts on the customers side with the marketing-technical possibilities of our
machinery and systems opens wider perspectives for the use of more targeted
promotional messages. On the KHS Day, under the title of "Packaging
Intelligence – Secondary Packaging", we used the platform for short talks and
the Talking Table as an opportunity for intensive exchange of opinion and we
were particularly pleased with the reports on their experience by our guests
Myriam Shingleton (Carlsberg) and Geert Mars? (CCE). My conclusion is that,
through dialog between technology and marketing, the Innovation Flow Lounge
promotes knowledge about the new applications on both sides. We are very
much in favor of a continuation and further development of this trade-show
attraction in 2017."
Dr. Ralph Schneid, Head of Product Management, Process Technology,
Krones AG: "I thought the Innovation Flow Lounge was an excellent idea. After
the lecture, at the Beverage Innovation Bar, it was easy to engage in
conversation with the audience and continue the discussions started in the
lecture and find out more about each other?s views and experiences. The
Innovation Flow Lounge should most definitely be continued."
Bill Bruce, Group Editorial Director, FoodBev Media: "The Innovation Flow
Lounge was a clever addition to what we have all come to expect at drinktec.
Putting marketing and branding issues into the mix created a real buzz, with
new types of visitors clearly in attendance. These days so many key purchasing
decisions are made by those with a background in branding and design – and
not just a technical background. So adding the Innovation Flow Lounge to
drinktec made a lot of sense and added real value. This was reflected in the
caliber of many of the trade fair visitors we met at our stand in the New
Beverage Concepts Arena in Hall B1. The sessions by Krones, Rastal and KHS
were well attended and the Beverage Innovation Bar and Talking Table
sessions drew good crowds every day. But for us, the highlight was of course
the FoodBev Media session themed ‘Creating a successful product’, which
attracted over 120 delegates."
Sabine Sahm, Press Spokesperson, RASTAL GmbH & Co. KG: "It was our
impression that the program on the RASTAL theme day was rewarded with a
truly marketing-oriented and -interested audience. It was particularly noticeable
that there was a high proportion of international guests in the Lounge. For our
company we can therefore quite clearly state that the concept idea of a
supplementary marketing platform as part of a primarily technically oriented fair
has been a success."
3 Дек. 2013