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. Liquor supplies hit ahead of New Year
With the software facing teething troubles, the new technology introduced by the government this month has resulted in scarcity of liquor in the market, and the trade body says supplies are down by 60 per cent.
The excise department on December 18 introduced the online monitoring system in all the 13 depots of Telangana State Beverage Corporation Limited (TSBCL) which involves track & trace mechanism and liquor validation.
But, both software and hardware are not working properly. The department gave training to its staff on December 16 and 17, but they are still struggling to come to terms with the new system. As a result, the retail traders are not able to lift the stocks from the TSBCL depots. And the technical hitch has jolted the traders as it comes at a time when the liquor demand is the highest in the year.
"It is an ironical situation since there is enough liquor stocks in the depots and the demand is at its peak, but we are not able to sell it. With the software not working properly and the staff not wellversed with the new technology , the stock is not being released to the market," said D Venkateswar Rao, president of Telangana Wine Dealers' Association.
Normally in the month of December, on an average, over 30 lakh litres of beer and 25 liters of Indian made foreign liquor (IMFL) are expected to be sold. However, with the supply being affected by a software glitch, the retail traders have lifted only 12 lakh litres of beer and 8.75 lakh litres so far. With only two days left before the New Year cele brations, the traders say it is practically impossible to meet the NY demand.
"With the scarcity of the legal liquor supply , there is a possibility of the sales of nonduty paid (NDP) and spurious liquor shooting up. This will only dent the revenue of the government," said Rayala Subba Rao, honorary president of Telangana Bar Owners' Association.
Foreseeing the problem, the Association of Liquor and Beer Suppliers had written to the TSBCL on December 19 and asked the corporation to postpone the implementation of new online monitoring system to next month. But, the plea only fell on deaf ears.
"If depots fail to dispatch liquor in bulk to traders between December 21 and 23, retailers may not serve consumers' choice for Christmas and New Year celebrations.We made this point when we wrote the government, but nothing has happened in terms of rectification," said M Kameswar Rao, general secretary of Association of Liquor & Beer Suppliers.
Realising the problem rather a little too late, the government on Tuesday step ped in to find a way out. Ajay Misra, revenue principal secretary (revenue), convened a meeting and instructed the excise officials to ensure the liquor supply to the retail traders. "There was a technical snag in the new system which we have identified. The officials are working day and night to ensure smooth liquor supply," said Misra.
Officials in C-Tel Infosystems, vendor of the online monitoring technology , said the government had asked the company to ensure the supply of 2 lakh liters of beer and IMFL on two days before the New Year celebrations.
"Any technology is bound to face teething problems.While we are confidant of tackling the issue quickly, we are also working on meeting the target fixed by the government," said K Srinivas Krishna, CEO of C-tel Infosystems.
The traders, however, said 2 lakh liters of beer and IMFL would not be sufficient to meet the peak season demand.
30 Дек. 2015