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. ...
The global outlooks of the legal market of cannabis are excellent. It is possible to simultaneously imagine dry law repeal and craft brewing boom but not in one but in several consumer categories. For alcohol is contained in liquids and cannabis derivatives can be in three physical forms.The value of legal market of cannabis and its products can reach 10% of the world beer market in five years, and in 2030-2040 even reach the same scope provided the current rates of legalization and development of market infrastructure remain at the same level. Cannabinoids are actively integrating into the food industry from chewing gum to beverages deforming the pharmaceutical and alcohol markets, they influence the trends of healthy lifestyle and beauty. ...
China. Consumers swap mass-produced local beers for imports and local craft beers
Now, one of Jin’s bars, NBeerPub, tucked away in a laid-back part of Beijing’s old town, buzzes with young Chinese customers ordering imports like Delirium Tremens, Lindemans Framboise and Brewdog Punk IPA. Jin even sold a bottle of Brewmeister Snake Venom, a high-alcohol barleywine-style beer from Scotland, for about 2,700 renminbi, or more than $420.
“Slowly, Chinese people have more money in their pocket,” Jin, 43, said in his apartment, where over 6,000 bottles from more than 60 countries filled the shelves. “After they have money, some want something better in terms of taste as well as lifestyle, especially young people.”
As tastes rapidly change, Chinese consumers are swapping mass-produced local beers for imports and local craft beers.
It is the type of opportunity that is at the heart of Anheuser-Busch InBev’s $106 billion deal to buy SABMiller, its rival global brewer. While major markets in Europe and the United States have been sluggish, developing markets like China offer a growing customer base and the potential for a stronger profit.
The Chinese middle class is swelling with young, affluent professionals who are more willing to spend money on brands and who are experienced travelers looking for a taste of other countries back home. And in China, most beer is still considered affordable. So sales have held up relatively well even as wine, the Chinese spirit baijiu and other more expensive liquors have been hit by the country’s anti-corruption crackdown and the slowing economy.
“It’s an escape route from maturity in the West,” said Spiros Malandrakis, a senior analyst of alcoholic drinks at the research firm Euromonitor International, referring to the established markets of the United States and Europe.
In China, Anheuser-Busch InBev and SABMiller are betting on premium products.
The two beer behemoths were among the first international entrants into China in the 1990s and initially teamed with local brewers. At the time, domestic breweries produced beer of inconsistent quality, but they were quickly multiplying, and consumption was soaring along with disposable incomes.
SABMiller took a 49 percent stake in a joint venture that makes Snow, which is now China’s best-selling beer brand. Anheuser-Busch InBev has since bought Harbin and Sedrin, two other top domestic brands. Together, the international brewers account for about one-third of the overall beer market in China.
As they pursue a merger, given their dominance, Anheuser-Busch InBev and SABMiller are expected to prune their portfolio in China to keep regulators happy, though it remains unclear where the trimming will be done. Some analysts think they would be able financially to justify the sale of a big domestic brand like Snow, since the market is moving toward premium offerings.
“They might be forced to divest, but it might not be the end of the world for them, because Snow is not necessarily the price point for them,” said Shaun Rein, founder of China Market Research in Shanghai. “Consumers are looking for better quality.”
When the deal was announced, Anheuser-Busch InBev said it would “promptly and proactively” resolve any regulatory issues in China.
The focus follows the shift in the market in recent years.
Imports have swiftly grown to 1.4 billion renminbi (around $220 million) in 2013, from 335 million renminbi in 2009. But the total volume of beer sales in China has dipped of late.
Homegrown craft beers are gaining favor. Beijing is home to about half a dozen microbreweries, and others have popped up in cities across China.
At the Jing-A Brewing Taproom in Beijing, the owners, transplants from Connecticut and Toronto, serve American-inspired beers with local flair, including Worker’s Pale Ale, Airpocalypse Double IPA and Mandarin Wheat.
Ji Chen, a banker, developed a taste for fine beer as a student in Belgium. When he returned to China, Chen, now 28, started buying imported beer at the supermarket and hanging out at brew pubs.
“I don’t think it’s expensive,” he said, sipping the Flying Fist IPA at Jing-A. “If you go out to drink at a bar, you would have to spend this much for any drink you get. And craft beers here are of good quality.”
The high-end varieties can fatten a company’s bottom line.
More than 30 percent of sales under the Snow brand are in the premium segment, including Snow Draft and Snow Brave the World, according to SABMiller’s annual report. The brands Anheuser-Busch InBev markets as premium in China, which include Budweiser, Corona, Stella Artois and Hoegaarden, make up nearly a quarter of its sales by volume.
“All of this premiumization and trading up is the biggest revenue driver of our industry,” Jean Jereissati, Anheuser-Busch InBev’s China president, said at an investor seminar in September. “And it is very relevant for our company.”
Anheuser-Busch InBev and SABMiller are digging deep into their cooler of longtime brands in the hope of attracting more discerning customers. In part, they are promoting the provenance of their brands.
When Budweiser Supreme was introduced, the company projected a video detailing the recipe’s origins and ingredients onto a giant bottle in various Chinese cities. Against a striking soundtrack, the company described how the beer had the “rich aroma of wheat malt flavor and aristocratic bearing.”
Lifestyle, too, is major selling point.
Other advertisements featured Budweiser Supreme being poured in a restaurant by a waiter wearing white gloves. In the summer, women in their 20s, wearing dresses with Corona or Budweiser logos and sometimes long white boots, were often seen milling around the bars and chatting with customers in the upscale Sanlitun area of Beijing.
“They put a lot of money into the marketing, the heritage — all those things make consumers pay more for it,” said Jonny Forsyth, a global drinks analyst at Mintel, a research firm. “That’s what’s been missing in China. Younger people are more receptive to it.”
The message is getting through to consumers, who are increasingly willing to pay for beer.
At Heaven Supermarket, a store and bar with a backpacker vibe, Chen Jing, 30, browsed through the imported beer with her boyfriend, both of them clutching beers that cost about 50 renminbi each, or nearly $8. A bottle of Snow from the grocery store next door cost just 1.9 renminbi, or about 30 cents.
Most of the bottles going through the checkout at Heaven are overseas varieties like Hoegaarden, Corona and Budweiser, selling for 15 renminbi. And the store, across the road from a Rolls-Royce and Bentley dealership, is not short of people perusing more expensive beers, which can cost up to 100 renminbi, or about $15.
Chen started drinking foreign beer after vacationing around China and Southeast Asia. She has taken such a liking to the beer culture that she is planning a holiday in Belgium.
“I would rather be spending money on few quality beers than buying lots of cheap beers and feeling full and headachy,” she said. “It’s more about the lifestyle I choose than simply drinking.”
21 Янв. 2016