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. ...
Vietnam. Beverage companies seek tax delay
According to Decree 108/2015/ND-CP and Circular 195/2015/TT-BTC, which came into force just over two months ago, the special consumption tax on producers would be calculated based on the price that its member distributing company sold to sales agents and the taxable price must be lower than 7 per cent compared to the agent's monthly average end selling price.
Nguyen Van Viet, chairman of Viet Nam Beer Alcohol Beverage Association, said that the price gap being capped at 7 per cent would cause administrative procedures to become more complicated for companies.
"Beverage companies need time to adjust their production plans," said Viet, adding that implementation of the two documents should be delayed until January 1, 2017.
Nguyen Hong Linh, general director of Ha Noi Beer Alcohol and Beverage Joint Stock Corp. (Habeco), said that having the price gap between sales agent and distributing company capped at 7 per cent, instead of current 10 per cent, would make it hard for distributing companies to cover their operation costs.
The regulation would also cause difficulties in compliance, as the price of beverage products often change seasonally.
Participants at a conference yesterday urged the Government to revise the regulations on calculating the special consumption tax for companies that operated under a holding company model in order to create conditions for them to operate efficiently.
Several companies said that the taxable price should be the end selling price of the producer, not the end selling price of its member distributing company.
Le Hong Xanh, deputy director of Saigon Beer-Alcohol-Beverage Joint Stock Corp. (Sabeco), said that the new regulations would increase tax pressure on companies and might cause a decline in revenues as well as contributions to the budget.
Dau Anh Tuan, from the Viet Nam Chamber of Commerce and Industry, said that the issuance of legal documents must have an appropriate roadmap, adding that sudden amendments might force companies to face the risk of losses or even leave the market.
The two legal documents were issued months after the audit watchdog proposed that Sabeco pay an additional VND408 billion (US$18.2 million) in special consumption tax for 2013.
Sabeco distributed its beer products through several intermediaries, from a subsidiary, Sabeco Trading Joint Stock Company, in which it holds a stake of 90 per cent, to regional trading companies, before selling to dealers and consumers.
Sabeco's excise tax filing was based on the selling price of Sabeco Trading Joint Stock Company, while the state audit said that the excise tax should be calculated based on the selling price of regional trading companies, resulting in a controversy.
The association earlier this year said that the beverage industry contributed VND30 trillion to the State budget last year.
17 Мар. 2016