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. ...
In Singapore, Craft Beer Where You’d Least Expect It
Mr. Goh referred to nearby Sago Lane, which was called “Death Alley” in the first half of the 20th century because of its many funeral parlors and coffin shops, and the grim custom of some Chinese citizens going to these so-called death houses when they were about to die.
The government outlawed such places in 1961, and many of the area’s funerary traders had long vanished by the time much of Sago Lane was leveled to make way for the labyrinthine Chinatown Complex, whose exterior is brightly adorned with incandescent Chinese paper lanterns strung in zigzags above the busy street below.
Home to hundreds of food stalls and sundries shops, the structure is one of Singapore’s older hawker centers, or open-air food courts. The government built more than 100 of them from 1971 to 1986 while authorities, citing waste-management and public-health issues, enticed the island’s tens of thousands of food vendors from the streets to these facilities with multiple stalls and promises of low rent.
Though the move robbed Singapore of the lively street-food culture celebrated in many other parts of Southeast Asia, today the rough-and-tumble hawker centers thrive as community gathering spaces and lively eating houses. Here local chefs serve myriad foods hot, fresh and cheap, from Singaporean specialties like laksa (a rich, spicy, coconut broth-based soup) and chicken rice to Indian, Thai, Indonesian and even Western staples like hot dogs and spaghetti.
It was the affordable Chinatown Complex rent, minimal start-up cost and the chance to pair beers with all these local foods that in 2011 inspired Mr. Goh, 40, to open the Good Beer Company, Singapore’s first hawker stall specializing in craft brews. Offering a choice of some 60 imported bottles, the stall proved so successful that in January 2014 Mr. Goh partnered with a fellow beer merchant, Meng Chao, 47, to set up another stall, Smith Street Taps, right next door.
While Good Beer Company deals in bottled beers, Smith Street Taps began as the first Singapore stall hawking craft on tap. “It was a risk,” said Mr. Chao. “Bottles can sit on shelves, but with draft we have to turn kegs around quickly.”
Thus far that hasn’t been a problem. Now up to 11 taps from its initial seven, Smith Street Taps fast became the de facto center of Singapore’s nascent craft beer scene, going through its 20- to 30-liter kegs within two or three days. Some beers, such as the Bomb! imperial stout from the Oklahoma-based Prairie Artisan Ales, last less than a night. “People come for beers they’ll never, ever get to try, sometimes even if they travel to their source,” Mr. Goh said.
At Smith Street Taps, many local importers introduce overseas breweries to Singapore via tap takeovers, when a range of beers from a single brewery flow from most taps. Siren Craft Brew (Berkshire, Britain), Baird Beer (Numazu, Japan) and Modern Times Beer (San Diego, Calif.) are among those that have been featured at such periodic events. “It was a great night; we showed up early and stayed late,” said Matt Walsh, the head brewer at Modern Times, who traveled to Singapore for the occasion. “I was really impressed with the knowledge and enthusiasm of everybody there.”
Aside from its world-class tap list and compelling, nontraditional setting, Smith Street Taps succeeds by selling premium beers at prices far lower than those found at brick-and-mortar competitors. They can do so, in part, because their overhead is much lower.
According to Singapore’s National Environment Agency, as of Dec. 31, 2014, 87 percent of hawker stalls rent for less than 1,500 Singapore dollars (about $1,065) a month, a fraction of what many centrally located bars pay.
Of course, now that the pair has kick-started this craft beer hawker phenomenon, the model has caught on. At Chinatown Complex, for instance, the brothers Patrick Lim, 61, and Steven Lim, 63, opened OnTap a few stalls from Smith Street Taps in late 2014. The approach is similar, though the Lims pour only OnTap’s own beers and ciders, brewed in small batches less than 10 miles away in central Singapore. OnTap now manages stalls in the Chomp Chomp and Sun Court hawker centers, too.
As far as Mr. Chao is concerned, upstarts like OnTap aren’t necessarily competition — they’re a sign of progress. “It’s still about growing the market and just getting more people drinking good beers,” he said.
2 Мар. 2016