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. ...
Heineken eyes control of indebted Indian tycoon’s brewery
They said such a move would likely be a prelude to the Dutch drinks firm raising its stake in the maker of Kingfisher beer to above 50 percent, betting on a small but fast-growing beer market.
Heineken acquired a 37.5 percent stake in United Breweries in 2008 through its takeover of Scottish & Newcastle and has since increased its holding to 42.4 percent. With Mallya distracted by debts from a collapsed airline venture, this could be a timely grab by Heineken in a market that is growing much faster than the global average.
Two-thirds of Indians don't drink alcohol, often for religious or cultural reasons, but rapid urbanization and a rising middle class are changing consumer habits. India accounts for 13 percent of world beer consumption, and annual volume growth is expected to outpace the global average, and major markets like China, through 2019, according to ratings agency Moody's.
The sources said Heineken was considering asking Mallya to step down from the United Breweries board he chairs. Alternatively, it could call a shareholder meeting to vote on his ouster from a company his father built into a family empire.
The sources asked not to be named due to the sensitivity of the matter.
A Heineken spokesman declined to comment on any move to tighten control over the Indian joint venture, but said India remains an "exciting opportunity" for growth given its demographics and strong economic fundamentals.
Mallya and a spokesman for UB Group did not respond to emailed requests for comment.
KING OF GOOD TIMES
Banks, regulators and investigators in India have turned up the heat on Mallya, who inherited United Breweries at the age of 28 and led it on an ambitious expansion.
Creaking under mountains of bad debt banks themselves are under pressure from the government to chase up high profile cases like Mallya, whose Kingfisher Airlines collapsed in 2013 leaving unpaid wages and angry creditors.
Mallya has already been forced to give up control over United Spirits (UNSP.NS), part of his UB Group, to Diageo (DGE.L), which now owns about 55 percent of the company. He stepped down from the board last month, receiving a $75 million pay off. On Thursday, lenders to Kingfisher Airlines will auction off the company's Mumbai headquarters.
Mallya left India early this month - as banks sought a court order to confiscate his passport - and has not disclosed his whereabouts, but he has used his Twitter account to say he is not an "absconder" and would comply with Indian law.
The collapse of Kingfisher Airlines and the vast unpaid bank dues are a high-profile illustration of India's ineffective bankruptcy and debt recovery processes, and highlight the often close ties between politics and business.
A member of India's upper house of parliament, Mallya is known as the "King of Good Times" for his party lifestyle. He is often described as India's answer to British entrepreneur Richard Branson.
Mallya borrowed heavily to expand his airline's network, but a series of missteps, including the ill-conceived acquisition of a rival, saw the carrier grounded, some former senior staff said. They said Mallya micro-managed operations - from the selection of routes to the design of baggage tags - with no previous experience in the aviation industry.
"Unlike what he did in his liquor business, which is run by people who have the expertise, he got personally involved in the airline business .... a very, very wrong decision," said Sanjay Bahadur, who worked at the airline as a corporate affairs executive dealing with the government and regulators.
Mallya has blamed the airline's collapse on macro-economic factors and previous government policies.
17 Мар. 2016