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. ...
Vietnam. 3 billion-liter beer market attracts more foreign breweries
A report from Kantar Worldpanel Vietnam, a market survey firm, showed that an annual two-digit growth rate has been maintained in the Vietnamese market for many years, which is much higher than the six percent growth rate of the fast moving consumer goods (FMCG) market.
More and more beer brands from Belgium and the Netherlands, Mexico and Germany, Italia and Japan, have appeared in Vietnam as the Lunar New Year nears.
Despite the high selling prices, import products have been selling well. Japanese Ashahi beer, for example, is sold for VND25,400 per can, Thai Hite VND24,400, German Oettingger VND32,500-42,700 and Belgium red Chimay VND110,000 per bottle.
Doan Dinh Hoang, a branding expert, noted that Vietnamese tend to drink more and more beer. “Foreign breweries must have realized that the Vietnamese market is very attractive and they have flocked here,” Hoang noted.
This is also the reason why the Japanese partner in Sapporo Vietnam has recently bought 29 percent of Sapporo Vietnam’s stake from Vinataba to become a 100 percent Japanese invested enterprise. Sapporo’s plant in Long An alone puts out 40 million liters of beer a year.
Mikio Masawaki, general director of Sapporo Vietnam, believes that the Vietnamese market is still strongly developing, predicting that the high-end market segment would grow by 70 percent by 2020 instead of 55 percent now.
He thinks that the biggest competition in the beer market next year will be in the high-end segment.
AB InBev, whose name has recently appeared in local newspapers as a party in the AB InBev – SAB Miller merger deal, is running a brewery in Binh Duong province which has the designed capacity of 50 million liters.
Nguyen Huy Hoang of Kantar Worldpanel Vietnam noted that foreign breweries have witnessed higher growth rates than domestic ones.
Hoang said taking over existing companies is a growing tendency in the market. Foreign groups, when entering Vietnam, would cooperate with domestic companies to take full advantage of the domestic companies’ network and good understanding about the market.
Later, they want to exploit the domestic market under their business strategies, and therefore, tend to turn joint ventures into wholly foreign owned companies.
Nguyen Van Viet, chair of the Vietnam Beverage Market, warned that Vietnamese breweries will have a difficult development period ahead as the competition in the market is getting stiffer.
“The luxury tax rate will be raised to 65 percent in 2016-2018 from the current 50 percent, which would bring bigger challenges to Vietnamese breweries,” he warned.
18 Дек. 2015