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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.

India. Pint-sized businesses

“If you’re a foodie you don’t just go to Mc Donald’s. And if you’re a beer lover you don’t just drink industrial lagers, you come to us. We are seeing people demand variety, like in the US,” says Greg Kroitzsh, MD, Barking Deer, a Lower Parel pub. Pankil Shah, a director of Neighbourhood Hospitality, which owns Woodside Inn, which has branches in Colaba and Oshiwara, says that now that craft beer is on par with the big labels in terms of pricing, “We have a lot of repeat customers who come back for the taste of craft.”

Craft beers in small batches have caught on at bars across Mumbai. Adventurous patrons are quaffing ale, stout and ciders made by smaller breweries. The 45-plus microbreweries— a category which first launched in 2009 — in the country offer over 500 varieties of craft beer between them. The 10 companies brewing in Maharashtra alone serve up at least three or four new craft beers every week.

Indian craft beerThe Barking Deer, which served Mumbai its first craft beer 26 months ago, is launching a Republic Day special with its dark rice beer, a follow-up to its popular Christmas ale. In the past five years, Pune-HQed Doolally, India’s first microbrewery, has launched 60 new beers and a Mumbai outlet; this winter, it is introducing a mango cider and a coffee porter. Brewbot is offering a stout and a cider this season. White Owl, 15 months old, has already introduced 16 varieties of beer so far; it is now bringing out a witbier (a Belgian style pale ale that uses more wheat relative to barley) with ‘a light, fluffy body offering a citrus orangey flavour.’ The Gateway Brewing Company now has coffee stout, a creamy combination of traditional stout and single estate coffee sourced from south India.

Of course all the experimentation has its boundaries. As Greg Kroitzsh, MD, Barking Deer says, “Innovation is key, but it’s the approachable beers that do really well in India.” ‘Approachable,’ in India, rules out an extreme sour or an overly bitter taste. Light-bodied wheat beers, which go well with spicy Indian food, do best. For example, in Woodside Inn, wheat beers are 70% of their sales within the craft segment.

To keep the perception of variety going, one strategy brewers use is to rotate beer varieties, with just a few favourites permanently on tap. And they encourage experimentation sampling. Sameer Seth, a partner in Bombay Canteen at Lower Parel, says, “We let people have tasters and samplers and it keeps the buzz going.”

New biz on tap

For the breweries, one could say that their flagons runneth over. Doolally, hopes to open up to four more outlets in the near future, says co-founder Suketu Talekar. “We are close to exhausting our installed capacity of 17,000 litres per month in Pune. We need to scale up to meet the growing demand. In the medium term we are looking to raise funds, but it’s unclear now.” Talekar is not alone. The Gateway Brewing Company, which works on a supply-only model to 65 restaurants in Mumbai, wants to add at least another 10 across the state by the end of this quarter. Another popular north Mumbai-based brewery, Brewbot, is scouting for locations in Bandra and south Mumbai to open new taprooms.

Globally, India’s consumption of beer is one of the lowest: per capita annual consumption is around two litres. The Beeronomics 2015 report predicts that in 2016, India’s consumption will be just a few sips more: a miniscule 2.6 litres. Mehra of Gateway says, “The authorities need to support this industry just like they did with wine and allow it to grow, because unlike the monolithic macro brewers, we actually care about the product and not just the label.”

So far, Maharashtra’s state excise department hasn’t been hospitable. The prohibitive taxation policy is a downer: beer is taxed 1.67 times higher than spirits like whisky and vodka in the state.

According to the All India Brewer’s Association (AIBA), in a case of 7.8 litres of beer, the absolute alcohol content is a mere (point five) 0.5 ml whereas in a case of whisky of 9 litres, the absolute alcohol content is 42.8% meaning 3.85 alcoholic litres. Craft brewers say the alcohol in their products is below usually 5 per cent and never more than seven per cent. Taxing beer, in their perhaps biased view, is like taxing water.

Shobhan Roy, Director General AIBA says, “Beer is not daaru (alcohol). By taxing beer higher than spirits, the government is compelling people to opt for spirits. The growth of beer as a category is being arrested and on a year-on-year basis we are only seeing a 3% national growth and in Maharashtra the sales have been flat.” He adds, “If the industry needs a fillip and the government wants to improve its revenue from beer, then more retailing outlets for just wine and beer need to open which have less duty and this will wean people off spirits as well.”

But what is a craft beer anyway?

The appeal of craft beer is all about the texture, the ‘mouth feel.’ The mass-produced labels you can buy at any wine shop or dive bar have what Brewbot partner Ketan Sinh Gohel calls a “synthetic taste. They have a high glycerin index to increase shelf life. Most craft beers, unless they are of higher gravity, typically expire in 21 days, as there is no preservative or anything artificial in it.”

The ingredients are of huge importance, though views differ on where the best sources are. Javed Murad, founder of White Owl Brewery, for instance, imports all his ingredients. But Rahul Mehra, founder of The Gateway Brewing Company, says “All our malts are sourced locally from Gurgaon and then we roast and treat it ourselves.”

You’re unlikely to find a craft beer using any substitute for malted barley. Mass producers often substitute corn or rice for malt to cut costs, and also use a pasteurisation process to ensure longevity. Mehra says, “There is no skimping on anything. We don’t spend on billboards and gimmicky marketing and treat beer as a mere commodity like some mainstream commercial beers. We put everything we have in the craft and hence the distinct taste.”

22 Янв. 2016

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