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. ...
India. United Breweries Uses IT to Strengthen Market Leadership
With 100 years of brewing heritage, United Breweries Limited (UBL) has been a market leader in the beer business in India with over 50% market share. It has a portfolio of winning brands, with its flagship, Kingfisher, being synonymous with beer in the country.
The company operates in a very complex regulatory environment and has a network of 30 breweries across the country to meet the market demand. Kingfisher beer has won many laurels at International beer festivals and is available in over 50 countries. It is the leading Indian beer brand across the World.
Beer that is supplied to bars in kegs and dispensed from taps on bar counters is referred to as Draught Beer. This type of beer is extremely popular amongst consumers and has seen rapid growth in recent years. To support the growth the company has invested in a large number of returnable kegs. Draught beer being fresher than bottled beer, has a shorter shelf life.
Kegs—where the Draught Beer resides—have a long distance to travel from the brewery to the tap. Replenishment and recycling them with fresh stocks demand calling them back in time from multiple locations.
The beer kegs are valuable company assets, moving from breweries to distributors to pubs and then back home again. A few lose their way and never reach home. It was manually difficult to maintain records of kegs that have been supplied and returned. “At the moment, we have many customers who buy beer kegs regularly and there are some who buy not so frequently and the lack of visibility results in empty kegs not being collected in time from these non-regular customers,” says S Ramakrishnan, Divisional Vice President–IT, United Breweries.
But wait, there is more! The company’s manual tracking system did not provide an accurate estimate of the keg float . There was no structured method of being certain about the inventory accuracy. They did not get a detailed understanding of the keg loss rate, which was another issue for the brewing stalwart.
A key factor in ensuring appropriate service levels and cost management is the turnaround time of kegs and their security. The business need was to find a solution to meet this challenge. UBL decided to use technology to track its beer kegs in order to provide greater visibility into the path its kegs take after they are filled at the brewery.
All the beer kegs have an RFID tag with a unique identifier which is associated with the actual identity of the keg. The master data pertaining to every keg would be maintained in a database. When the keg is filled with beer, the tag will be updated with manufacturing information such as SKU Code, date of manufacturing and batch number”, adds Ramakrishnan. The entire movement of the kegs thereafter, across the supply chain from the brewery to the distribution points and then on to the bars and final return to brewery would be recorded in the system.
Ramakrishnan, his IT team along with sales and manufacturing teams conceptualized the idea of using RFID tags to track the beer kegs as scanning is easier and records a 100 percent read rate. The measurements of the tag are 48.5 x 38 x 9.5 (mm). “It is glued with an adhesive, which cannot be removed and the tags are fixed on the metal body of the keg. “The tag has to withstand high-heat and high-pressure wash cycles, and work on metal assets containing liquids,” says Ramakrishnan.
RFID technology was chosen over barcode technology so as to ensure that there were no scanning challenges on the ground. RFID terminals that supported GSM networks were chosen, so that transactions could be uploaded to the server from the field.
The system requirements were quite unique to the industry and there were no standard products available that catered to the needs. It was therefore decided to build the software using the mobile framework, as mobility is the key requirement of the system. The system had to be designed with a simple and intuitive interface for it to be effectively used by the people involved in the supply chain and had to support offline capability for it to work effectively under the present working conditions.
The number of kegs being scanned during each operation are recorded through a RFID reader which is GSM enabled. The data would be uploaded to the server periodically using the Synchronization process. During the Synchronization process, the required master and transaction data would also be pushed into the handheld device.
“We had anticipated initial challenges when the system would go live as the users involved were not very skilled. Therefore, to minimize the risks, we decided to conduct a dry run for nearly 2 months with the objective of getting feedback from the field and fine tune the system,” says Ramakrishnan. This approach has helped the company immensely as some of the users became quite familiar with the system. A considerable amount of time was spent on training the users so that they would be able to operate the system effectively.
The dry run started this February and the system became fully operational in May. “At this point of time, the RFID technology to track beer kegs has been implemented in Bangalore and Mumbai” he says.
The company took the help of technology partners–TeamLiftss and GoDB. TeamLiftss provided the RFID tags and GoDB developed the software says Ramakrishnan, adding that they zeroed in on them because they were cost effective and efficient. He even added that the handheld devices were purchased from Zebra.
In High Spirits
The company is in high spirits with this project. There is better use of the existing keg fleet, identifying bottle necks and reducing capital investment. Overall, it has given UBL an unprecedented view of keg inventory.
Ramakrishnan exclaims triumphantly,” post implementation of this system, the visibility of kegs lying with customers at any point of time has been one of the biggest benefits. Using this information, the distribution team is able to improve collection of empty kegs resulting in faster turnaround time and increased float available for distribution.”
The increased availability of kegs for distribution has helped increase overall sales, track delays in delivery and improve overall supply chain planning and execution.
With all guns blazing, UBL plans to use RFID technology to track beer kegs in other markets like Pune, Delhi, Punjab, Kolkata, Hyderabad, Goa and Chennai in due course.
When kegs return well in time, they end up ready to serve the cheering pub hoppers. So it’s cheers all the way!
22 Дек. 2015