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. ...
BrauBeviale 2014: unusual, creative, characterful
Discussion – demonstration – degustation
Beer tradition in wine country Italy and beyond
Variety of taste, fine beers and the pleasure of experimenting is what the new culture of craft brewing is all about – not without reason the trend theme of BrauBeviale 2014. Small and medium enterprises and global players from all over Europe and the world meet in N?rnberg at this year’s most important capital goods exhibition for beverage production from 11–13 November. Around 1,300 exhibitors present their extensive range of raw materials, technologies, logistics and marketing ideas for the approx. 33,000 trade visitors. The event focuses on the culture of craft brewing. Why? Because beer is at home here. The trend theme offers many opportunities for exhibition participants to turn good talks into good business – from the European Beer Star Award and inspiring presentations to the Craft Beer Lounge.
“The currently popular trend to craft beers originated in the USA,” says Andrea Kalrait, Director Exhibitions BrauBeviale at N?rnbergMesse, but there’s no need to look so far. The art of craft brewing has also been cultivated for centuries in many breweries on N?rnberg’s doorstep in Franconian Switzerland. “It is therefore obvious to bring this worldwide movement into the home of beer at this year’s BrauBeviale with the trend theme ‘Culture of Craft Brewing’”, according to Kalrait. The renowned US beer specialist Jim Koch, who himself started with small experiments in his own kitchen, has been obtained as keynote speaker at the opening ceremony of BrauBeviale. Today he is founder and managing director of the Boston Beer Company, which brews the famous Samuel Adams, and as an insider can provide excellent information on the development of the culture of craft brewing.
Craft beer development in the USA
Around 1,700 breweries existed in the USA at the start of the 20th century. Small breweries were gradually forced out of consumer favour and thus ultimately out of the market by massive nationwide promotion campaigns by the large companies. Only six large companies produced the beer for the US market in 1983 – mainly light lagers with low hop content. A home brewing scene developed parallel to this with the aim of restoring the consumers’ awareness of the variety of taste and the tradition of beer and whetting their appetite for more. More and more small and local breweries have now been stirring up the beer market with their craft beer specialities for a good 30 years. The number rose from eight breweries in 1980 to 537 in 1994 and over 1,600 in 2010. Whereas the beer market generally tends to shrink, the market for craft beer has advanced regardless. The market share of craft beer in the USA in 2011 was 9.1 per cent – trend rising.
Tradition and innovation in Germany
The situation in Germany is a little different, emphasizes Dr. Werner Glo?ner, Chief Executive Officer of Private Brauereien Bayern (Bavarian Association of Private Breweries), the honorary sponsor of BrauBeviale: “The name craft beer doesn’t really fit here. In the USA it was newly founded craft breweries that launched the trend to beer specialities in order to stand out from the beer brewed by industrial concerns. On the other hand, we have always had small and medium-sized breweries that brew craft beer.” Glo?ner does, however, very much welcome the trend of the craft beer movement to characterful beers and specialities: “In this way old traditional kinds of beer like M?rzen or Zwickl also regain a more original taste, so we gain more and more new beer lovers.” World champion beer sommelier Oliver Wesseloh assesses the situation in his home country Germany positively: “We’re well on the right track. More and more gastronomes and retailers are discovering the trend to the culture of craft brewing and recognize that they can distinctly stand out from the competition if they offer their customers a suitable variety of beers. Networking is increasing appreciably in the industry.”
Because beer is at home here – “Culture of Craft Brewing” as trend theme
The “European MicroBrew Symposium – Market, Trends and Technology”, which generates important impetus and good ideas the day before BrauBeviale, also promotes the exchange of views among the brewers. N?rnbergMesse and the Versuchs- und Lehranstalt f?r Brauerei (VLB – Brewery Research and Training Institute) of Berlin are now organizing this popular training event for the third time. The symposium is intended for managing directors, proprietors, technical managers and master brewers from European microbreweries and pub breweries, and for representatives from the supply industry. The key topics are engineering and technology with the focus on microbrewing as well as market developments in the European craft brewing segment. The conference language is English. The Forum for Inspiration, Innovation & Exchange also takes up the motto during the actual exhibition, when well-known international speakers explain “beer culture” to the visitors from technical and commercial management in the European beverage industry. Those who would then like more information with specific examples simply follow the exhibitors tour created specially for the trend theme “Culture of Craft Brewing” and find out at first hand what the specific solutions for creative brewers could look like.
Craft beers in Europe and worldwide
The craft beer movement in Europe is especially well established in Scandinavia and the Benelux States. In Denmark there were 19 breweries in 2000 and nine years later as many as 120. Industry experts therefore regard this country as the pioneer for craft beer in Europe; many German brewers made a pilgrimage to the USA and to Copenhagen for the Beer Festival. The culture of craft brewing is currently also developing extremely positively in Italy and its most northern province, South Tyrol.
Italy, the wine region, as a country with a great beer tradition? Barely imaginable, but true. Italy has a long tradition of brewing, marked by aspects such as its proximity to Austria and the breweries in North Italy. Until recently there was no great variety, but today the Italians experiment more than ever with brewing methods and storage in diverse barrels. Luca Giaccone, Italian craft beer expert and co-publisher of the “Guida alle Birre d’Italia” from the Slow Food Organization: “The small and hardly noticed microbrewing scene in Italy has grown rapidly in the past years and is attracting tremendous interest. Every self-respecting restaurant now offers the right beer to go with the Italian specialities. Craft beers from Italy are also very well accepted abroad: We are proud of the constantly growing number of products that are very popular on the international market. The ‘from Italy’ tag attracts interest and stands for quality and enjoyment.” There are meanwhile some 300 small breweries in Italy that like to try out new things and are dedicated to “birra artigianale” (craft beer). South Tyrol still plays a key role here: as many as eight pub breweries brew beer specialities, some of which have won international awards. The specialist trade has also discovered the potential offered by characterful beers. One of them is Lukas Harpf, owner of the family company harpf with its headquarters in Bruneck in the eastern part of South Tyrol. He is intensively involved with craft beer specialities from Italy and other beer nations. “I am very interested in a return to our roots and our craft skills. As a beverage retailer, I have therefore supported the slowly re-emerging brewing tradition and beer culture in South Tyrol over the past years,” says Harpf, explaining his philosophy and the background for his action.
European Beer Star Award – taste and choose your favourite
Not only Italian beers, but craft beers from all over the world faced the strict judging of the jury for the European Beer Star Award, which has had its exhibition home at BrauBeviale since 2004 – there were over 1,500 beers in 2013. The award launched jointly by Private Brauereien Bayern, the honorary sponsor of the exhibition, and the German and European federations has quickly developed into Europe’s biggest beer competition. Visitors can traditionally try the gold medal winners of the craft beers on the first day of the exhibition and choose their favourite: the Consumers’ Favourite 2014 in gold, silver and bronze. There will also be a special degustation area for tasting trends and specialities throughout the exhibition. “In line with the trend theme we have set up a Craft Beer Lounge, where selected beer creations can be tasted in a pleasant atmosphere with expert guidance from beer sommeliers,” says a delighted Andrea Kalrait commenting on this offer for thirsty visitors. “So there are no more barriers to good talks and good business.”
25 Мар. 2014