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. ...
India. Bihar gears up for liquor ban: Everything you need to know
The partial ban would not cover the sale of Indian Made Foreign Liquor (IMFL), which would be available in 656 shops within urban limits, but not in rural areas, of the state’s 38 districts. This would bring about a sharp reduction in the number of total liquor outlets, which stood at 6000 till March 31.
“We have made all arrangements to implement a total ban on sale of country liquor. The government would act tough against those involved in making spurious liquor,” excise minister Abdul Jalil Mastan had said pointing to the bill introduced in the Bihar assembly on Wednesday.
Bihar had tried its hand at prohibition in 1977-78 during the regime of Karpoori Thakur, but failed to implement it effectively.
Alcohol prohibition in India is in force in the states of Gujarat, Nagaland and parts of Manipur; as well as in the Union Territory of Lakshadweep. Kerala has been implementing prohibition in a phased manner since 2014.
Though the state would lose an estimated Rs 2000 crore of revenue from the ban on country and spiced liquor, the state government is unfazed. Bihar earned Rs 4000 crore from liquor sale in 2015-16.
“There could be a total ban on liquor in the next one year. We are doing it for a social cause and to save millions of households where women are subjected to domestic violence and family disintegration, besides facing social and health costs,” the chief minister had said.
Kumar has repeatedly talked about the positive social impact the ban would have, especially on women — his vote bank, to justify it.
He has underlined how women voters complained of rising number of drunkards and broken homes due to the liberal excise policy pursued from 2006 to 2015 during his earlier regime. It had paid rich dividends as the state’s revenue figure rose from paltry Rs 319 crore in 2005-06 to Rs 3650 crore in 2014-15.
The Bihar Excise (Amendment) Bill 2016 prescribes a death penalty for those engaged in sale and manufacture of illicit liquor and stiff penalties in case of deaths of consumers, or injury. Public nuisance by drunkards would invite jail terms and stiff fines.
The government has already started cracking its whip on people involved in the sale, transport, storage and consumption of illegal liquor to send a clear signal.
While 1839 persons have been arrested and sent to jail, the crackdown has resulted in the seizure of 8902 litre of country liquor, 1718 litre of illegal foreign liquor and 25,932 litres of illegally brewed liquor.
The government’s intention to implement the ban strictly is also manifested in the detailed action plan with the Bihar State Beverage Corporation Limited (BSBCL), which was previously a wholesaler, taking the new role of a retailer, weeding out private dealers in liquor business.
All the IMFL shops in urban areas will now be run by BSBCL.
State police headquarters have made station house officers (SHOs) solely responsible for ensuring the ban. The SHOs will be helped by chowkidars and dafadars at the ground level. Authorities have clarified that in case of any violation, SHOs will face action.
For an effective implementation of the policy, the production of rectified spirit has already been stopped in all distilleries from March 1 and from April 1 all of them will switch to production of ethanol from molasses.
The state, however, faces the challenge of checking the flow of spurious liquor from illegal units and neighbouring states and countries like Nepal, Bangladesh and Bhutan.
Effect on manufacturers
The partial ban is likely to have an adverse impact on Bihar’s hope to emerge as a brewery hub as the ‘uncertainty’ over an impending total prohibition has forced three beer companies to put their modernisation and expansion plans on hold.
These companies had set shop in Bihar to make it a production base for supplying low alcohol products to other states.
Lord Karan Billimoria’s Molson Coors, Danish brewing company Carlsberg and Vijay Mallya’s United Breweries (UB) had set up shop in the consumption-driven state, involving a total investment of Rs 800-1000 crore.
Politically, the ban appears to be a strategic move of the chief minister to consolidate his new constituency of three crore women electorate and also usher in a silent revolution of women empowerment through the formation of 10 lakh self-help groups (SHGS), which have been involved in enforcing the ban.
In July last year, the CM had mooted the idea of prohibition when women members of SHGs demanded its inclusion in the state vision document 2025.
31 Мар. 2016