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. ...
United Breweries, Sanofi India and Bayer CropScience boards to go with Vijay Mallya as chairman
Several independent board members of these companies, speaking on condition of anonymity, told ET that until they receive any government or regulator's notice questioning Mallya's position they have no plans to ask him to step down as there are no complaints of corporate governance issues or irregularities against the board director.
"The functioning of the companies are smooth and there are no valid issues to ask him to step down," said an independent board member of United Breweries, now majority owned by Dutch beer maker Heineken.
Mallya, whose now defunct Kingfisher AirlinesBSE 3.03 % owes more than Rs 7,000 crore to bankers, did not respond to an emailed questionnaire from ET as of press time Wednesday. Some banks have declared Mallya 'wilful defaulter' and initiated loan recovery proceeding against him. They also approached the Supreme Court to prevent the businessman from travelling abroad because they feared he would settle abroad.
Some directors said the term wilful defaulter has come into usage recently and it is not clear whether it allows banks to stop lending to companies that have a wilful defaulter on its board.
GA Tadas, executive director at IDBI BankBSE 1.60 %, however, said companies have to take action once it is public that one of their board members is a wilful defaulter. "In case a company is non-compliant and still retains a wilful defaulter on its board, then it is for (market regulator) Sebi and RoC (Registrar of Companies) to act against such companies for noncompliance," he said.
Tadas, however, said it is not a problem to lend to a company which has a wilful defaulter on board. Mallya is currently chairman of UB, drug maker Sanofi, and Bayer CropScience, agricultural subsidiary of German chemical and pharmaceuticals giant Bayer AG.
A Bayer spokesperson denied comment on this topic, while an independent director at the firm said any decision on Mallya has to be taken by the German parent. A Sanofi India spokesperson said the board of directors will study the implications of the Sebi notification when it is published, and take action as deemed necessary. Shriram Subramanian, institutional shareholder activist and founder & MD of investor advisory firm Ingovern, said wilful defaulter is not a legally accepted term to debar Mallya from the boards of these companies.
"If Sebi notifies a policy that wilful defaulters cannot be board members then the board will have to ask him to gracefully step down," he said. "Now if the board perceives a reputational risk, it is another issue altogether," Subramanian said.
Several independent board members ET spoke to on these boards, especially United Breweries, said there are no corporate governance issues or irregularities committed by Mallya to ask him to step down. "Reputational risks arises if a regulator or government body challenges Mallya's role on our boards or if Mallya has done some financial impropriety and we do not take note of it, which is not the case now," said an independent board member.
An official at United Breweries, speaking on condition of anonymity, said it will examine the issue if a leading bank such as the State Bank of India "sends a letter saying that it will not lend to companies that have a director as a wilful defaulter".
17 Мар. 2016