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. Brewer Sabeco not selling majority stake to foreign players
After Sabeco’s IPO eight years ago, the state still owns the controlling rate of 89.59 per cent in the company and is looking to unload over 51 per cent of Sabeco’s equity. Dutch brewing firm Heineken is currently the only foreign large shareholder at the Vietnamese beer major, has a five per cent stake.
However, Sabeco does not want to sell the next batches of shares to foreign companies if the Ministry of Industry and Trade divests, the local newswire ttvn.vn reported discussion during a recent ministry meeting.
DEALSTREETASIA had earlier reported that the share sale for the brewer had been planned to be executed either in two tranches, or in a single tranche worth some $1 billion, to reduce the state ownership to 36 per cent. The government values Sabeco at roughly $2 billion through the divestment.
Vo Thanh Ha, Sabeco chairman, reportedly proposed the government to space the sales by at least a year so that production could stabilise, considering the transfer of such large amounts of shares affecting its performance.
Ha also asserted that the role of privatisation had been pale in Sabeco, where IPO was not for the purpose of fundraising, while the company has always had in place latest production technologies, the Bao Dau tu cited him. In terms of management capacity, the progress Sabeco had made was not resulted from privatisation, Ha reportedly added.
As the local largest beer producer wants to retain its own brand, government officials are concerned that it is the major hurdle to the privatisation process of this state-owned business. While the foreign investors interested in Sabeco are all players in the same industry (namely Thailand’s Singha Corp and Thai Beverage Group, Asahi Breweries from Japan, SAB Miller from the US and Heineken, which is already a Sabeco stakeholder), domestic bidders are experts in the real estate and financial sectors.
“We should be cautious when working with large firms. Cooperation in the same industry can be beneficial, but the threat is that we might soon lose our brand. By all means, annexationism always exists in the business method of large companies,” Sabeco’s former chairman Phan Dang Tuat told the company’s shareholders at a mid-year meeting.
The beer maker eyes strategic investors who do not directly compete with it.
As the largest beer consumption country in Southeast Asia, this market in Vietnam is estimated at $3 billion with an annual growth of 15 per cent. Several international beer firms have been present in the country to enjoy fruitful development and threaten the position of domestic players like Sabeco and the Hanoi Beer Alcohol and Beverage Corporation, or Habeco.
Vietnam Brewery Limited, for example, earned nearly VND6.5 trillion ($288.5 million) profit in 2014, far surpassing VND3.9 trillion of Sabeco, although sales of the provider of Heineken and Tiger brands for the year accounted for only 70 per cent of the Vietnamese brewer, which had the leading market share of 46 per cent, according to Euromonitor International.
Consolidation has also taken place in the country, most lately seeing Japanese Sapporo’s wider reach by fully acquiring its Vietnam-based facility from the Vietnam National Tobacco Corporation.
Carlsberg is also an active brand in this area, having forged joint ventures with Viet Ha Beer, Ha Long Brewery and Beverage and Habeco; and taken over Huda Beer, a brand focused on the central region of Vietnam.
Meanwhile, later comers include AB InBev, which is involved in a formal merger with SAB Miller to help it exploit potentials in markets outside the US. AB InBev is running a brewery in Binh Duong province. In addition, Taiwan Tobacco & Liquor Corp targets to open a factory in Vietnam through partnership with Sapporo Vietnam Co Ltd.
25 Дек. 2015