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. ...
What happens at the «Point of Sale»?
"Craft Breweries – Strong Impetus for the Beer industry", was the topic at the
regulars' table on the first trade fair day. The trend to craft breweries was
discussed, which started at small, innovative breweries and has now reached
the global players. Can it help the industry compensate for decreasing sales?
What prerequisites are required for it? The following participants took part at the
Talking Table: Stephan J. Barth, Managing Director of Barth-Haas Group,
Georg Schneider, Managing Director of Schneider Weisse/Weisses Br?uhaus
G. Schneider & Sohn GmbH, Toni Greim, INSIDE Editor, Jeff Maisel, Managing
Director of Maisels Weisse/Brauerei Gebr. Maisel KG, Dr. Ralph Schneid, Head
Product Management for Process Engineering, KRONES AG, Ulrich Walk,
Division Chief of Process Engineering I, KRONES AG, Michael Weiss,
Managing Director at Meckatzer L?wenbr?u and Dr. Lydia Winkelmann, Editorin-
Chief at Fachverlag Hans Carl GmbH. A summary of the theses of the talks
and discussions is provided below:
• A great variety makes beer interesting for consumers and creates new
perspectives for breweries.
• Consumers are increasingly willing to pay a higher price for special
• Craft beer is not just a regional trend, but also a chance for the complete
industry, even if its volume is only approx. 8% of the overall market
according to estimates by Stephan J. Barth. However, sales of the
special beers have increased dynamically over the past years.
• The craft euphoria is good for the image of the complete brewery world.
It makes the industry more interesting and breaks down existing
• The craft trend creates price elasticity on a broad front, regardless of
whether you position your beer in the mid-range or upper price segment.
There is a market for both segments, as the success of Maisels and
Schneider demonstrates. Schneider even sells out its special editions
• Traditional regional breweries such as Meckatzer L?wenbr?u also profit
from the craft trend, because their beers have always been craft beers
and have maintained a good market share for years, Michael Weiss
• Independent of the size of the brewery or brand, the high quality of the
ingredients, the readiness to try out something new and the passion of
the brewers are the key to success.
Promotion Ideas and Extras
"A little something as an extra" was the regulars' table motto on the second
trade fair day. It concerned giveaways at the point of sale, i.e., sales promotion.
The question: Can intelligent campaigns or innovative, practical giveaways
support production presentation effectively and consequently smooth the path to
consumers? Eminent participants also discussed this issue. The following
people participated in the round table: Armin Junge, Managing Partner,
INCORE GmbH; Nils Lorbeer, Head of Trade Marketing & Category
Management, Campari Deutschland GmbH; Jorge-Matias Grabmaier, Manager
of Marketing, Sales, Purchasing, Logistics and Export, beckers bester GmbH;
Dr. Thomas Koy, Managing Partner, Holzmanufaktur Max Liebich GmbH;
Raymond Sahm-Rastal, Managing Partner, RASTAL GmbH & Co. KG; Philipp
Riediger, Member of the Executive Board, COMBERA GmbH. The most
important theses and statements from the panel discussion are presented
• A good promotion idea can save a lot of advertising costs. At the
launching of new beverages, the idea can open doors to special
• Unique, innovate extras are especially successful. The McDonald's'
junior bag is a good example of how extras can promote sales.
• However, the extras must fit to the product and its price level. This also
applies to special packaging, e.g., gift wrapping.
• Liquor can especially document product quality with high-quality
packaging and represent added value for consumers and gift-givers (Dr.
Thomas Koy illustrated this using examples with wood).
• Excellent results were achieved with a combined campaign of POS
promotion and a free glass (Philipp Riediger using the example of a
Bacardi campaign with an anniversary glass). The glass was also
introduced into restaurants.
• Extras and especially glasses can increase brand loyalty and the
uniqueness of the beverage, especially in the restaurant trade.
• The touch and feel of the glass plays an important role in acceptance by
consumers. Tests conducted by INCORE have demonstrated this.
Packaging Intelligence – Packaging as Sales Argument
In addition to the brand, secondary packaging is perhaps the most important
sales argument at the point of sale. New technologies have greatly increased
the possibilities of its use as an advertising medium. Environmental aspects and
cost-savings are also playing an increasingly important role. The following
people discussed the possibilities of secondary packaging: Bill Bruce, Editorial
Director, FoodBev Media Group; Bill Cecil, Vice President, Global Machinery,
MeadWestvaco Corporation; Geert Mars?, European Technical Packaging
Manager, Coca-Cola Enterprises; Niklas Other, Publisher, INSIDE; Norbert
Pastoors, Executive Vice President Operations, KHS; Michael Rapp, KHS;
Myriam Shingleton, Research & Development Director, Packaging Innovation
and Products Implementation and Optimisation, Carlberg Group; Karl Tack,
Managing Partner, Gebr?der Rhodius GmbH & Co. KG; Christopher Stuhlmann,
Werksleiter KHS Kleve, KHS; Andr? Wozniak, Managing Director and Director
Sales, RKW SE. The statements and insights of this panel discussion are
• In the past, foil packaging was mainly used in the discount sector; highquality
products were packed in cardboard boxes. New foil and print
techniques also enable high-quality imprinting. As a result, foil is now
also suitable for high-value brands.
• The practicability of packaging plays a greater role for consumers.
• Thanks to a new foil and an improved process, Carlsberg saves approx.
30 truckloads of fold each year (Myriam Shingleton).
• Coca-Colas has demonstrated how flexible production can be today, not
just with the "Share a Coke with ..." campaign. The measurable success
in sales figures shows that the company made the right decision.
• Many manufacturers simply do not know what possibilities exist.
Standard solutions are used far too often.
• Existing bottling plants are checked too rarely for optimization options.
• Contests, e.g., with individual coding, can be communicated very well on
secondary packaging. There are very successful examples of this
especially in England and the USA.
• When we consider the discussions and examples from other countries,
we see that Germany has a lot of catching up to do. "German beverage
manufacturers can still learn a lot there," Niklas Other said.
Creating a successful product
The FoodBev Media session on the topic ‘Creating a successful product’ raised
some great debate on the role of packaging, ingredients, branding and design
in creating great beverages. Brill Bruce, FoodBev Media’s Group Editorial
Director, introduced the speakers and encouraged participation from the
attendees. The first part of the programme was presented by FoodBev Media’s
Claire Phoenix, who looked at ‘Opportunities in Beverages’. Markus Lotsch of
Wild then explained the top 10 trends in beverages and talked about extending
the flavour experience with more lasting flavours. With Wild having just bought a
flavour company in Brazil, he was able to highlight the move to local taste
profiles and functionality. This was followed by Ollie Graham of Rexam talking
about ‘Consumers and Packaging’ – again highlighting the move to digital
printing on cans and new finishes to attract the consumer to the pack on-shelf
along with expounding a can's sustainability benefits. In the table discussion, the
panel discussed what is needed to create 'the perfect beverage’.
• Looking at ‘Opportunities in Beverages’, FoodBev Media’s Claire
Phoenix commented that the key trends were “matching products to
increasingly clearly identified niche consumer groups,” and “listening to
consumers, when it comes to trends such as ‘natural’, 'convenience' and
clear labelling of nutritional and functionality information.”
• Markus Lotsch of Wild said: “We can extend the flavour experience with
more lasting flavours – and these should reflect local taste profiles and
• Ollie Graham of Rexam said: “Engaging with consumers is essential and
choosing the right packaging is an important part of the story”. He
added: “Environmental sustainability issues are better understood by
consumers today and brands should ensure their packaging properly
communicates responsibilities such as recycling.”
• FoodBev Media’s Bill Bruce said: “Consumers need clear information
and with so much to be delivered, it has to go beyond what is on the
pack itself. The current and next generation of mobile technologies will
inform and entertain much better.”
• In summary, the panel agreed that “the perfect beverage delivered on
trends to natural and low or lower calories, great taste, convenient
packaging and clear and honest delivery of essential information and
3 Дек. 2013