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3-2019

Russia: Positions of Brewing Companies

The 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 brands

In 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 2019

During 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.

Indonesia. Diageo to set up plant in Bali to produce its alcohol-free drink Guinness Zero

Diageo is planning to open a manufacturing plant in Bali in a few months to produce its alcohol-free drink Guinness Zero. This is in line with the company's new strategy in Indonesia, the world's biggest Muslim-majority country, where drinking alcohol is a sin.

The move follows the regulation introduced by the Indonesian government earlier in the year that bans the sale of alcohol beverages in mini-markets and small shops. A few months later, Diageo introduced Guinness Zero in the country. It has spent about $1m (£669,960, €910,844m) so far on the launch.

Indonesia Guinness

Graeme Harlow, the managing director of Diageo, said: "We already had plans to enter the zero-alcohol beer market. After the ban came in, essentially it made it even more important."

The high production cost of Guinness Zero is Diageo's most immediate hurdle as the alcohol-free drink retails at half the price of a can of regular Guinness beer. The new plant is aimed at bringing down this cost.

Until the new plant becomes operational, it will continue to import Guinness Zero from Ireland, which makes the drink expensive because of huge transportation costs and a 10% duty.

Another hurdle for the company is the competition from the country's favoured Multi Bintang's Bintang Zero, a light and lemony zero-alcohol beer. Apart from the Guinness and Bintang options, consumers have two alcohol-free options from Dutch brewer Heineken.

While Diageo has introduced its alcohol-free drink in other markets under other names such as Kaliber in the UK and Malta in Nigeria, in Indonesia, it will retain the Guinness brand name. "We wanted it to be Guinness-branded and we wanted the product to be distinctively Guinness," Harlow said before adding that Guinness Zero will not be introduced beyond Indonesia.

Blaming the new Indonesian regulations, the company said that its net sales in Southeast Asia for the year ended June declined 28%, even as sales in the Asia Pacific region increased 64% year-on-year to £2.2bn.

Harlow said sales of Guinness and Diageo's other alcoholic beverages have fallen 40% year-on-year, since the ban took effect earlier in the year. Though the company is still selling its regular Guinness in large supermarkets and restaurants, the number of total outlets where it is available has reduced from about 70,000 to just 40,000 as a result of the ban.

The London-headquartered alcoholic beverages company currently has about a 15% share in the Indonesian beer market with sales of about 400,000 hectolitres. Until 2014, the country was its fifth biggest market for Guinness.

29 Дек. 2015

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