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. ...
Thailand. Move to boost rural economies
Thapana's mission is to promote higher incomes and better living conditions for people in rural communities, he said
He said that the private sector would help farmers and small business entrepreneurs in rural areas through enhanced production and management, as well as marketing know-how and communication methods to build awareness.
"It makes the cogwheels roll and move on," he said.
"Meanwhile, the government will be responsible for granting and executing the policies that are set to promote better incomes and living conditions in the rural economy, as well as related stimulus measures."
Thapana, who leads one of the 12 public-private steering committees under the Pracha Rath project, said that his committee's mission was to increase the income of the rural communities throughout the Kingdom. As a result, people will be happier based on having better living conditions, he said.
"To achieve our mission, we will focus on enhancing the development of three strategic pillars, which are agriculture, product processing by small and medium-sized entrepreneurs, and community tourism," said Thapana, adding that the aim is to develop farmers and micro entrepreneurs to become SMEs.
Thapana said that the launch of the social enterprise endeavour would be the nucleus for mobilising cooperation between the government and private sectors to develop the rural economy.
He said that the social enterprises would work as legal business entities but not for the benefit of their shareholders, with all profits returned to the community.
He said that enterprises would be enhanced by good governance and would operate without government subsidies or donations from charities.
The first social enterprise, Pracharath Rak Samakkee Phuket, was launched last week with Bt5 million in primary investment capital, raised from a grant of 5,000 shares for Bt1,000 each.
ThaiBev has allocated Bt1 million as a seeding fund for the company and more than Bt1 million has been raised by local businesses.
Thapana said that the social enterprises would have executive boards made up of members of the government and private sector, and each would have a managing director who was a well-known person working in civil society in the respective provinces.
He said the enterprises would have advisory boards made up of representatives from relevant ministries and government agencies, including the Ministry of Agriculture and Cooperatives, the Ministry of Commerce, and the Prime Minister's Office.
"Phuket has a high level of readiness. The province is currently a world [tourism] destination and has strong potential for further development both in community and global levels," said Thapana.
He added that for Phuket four agricultural products would be promoted - pineapple, lobster, goat milk, and organic vegetables.
Batik would be focused on as a strategic value-added product, with branding done under the product-processing sector. For community tourism, the province would develop a year-round tourism calendar.
In addition to Phuket, he said the committee would set up social enterprises in four other provinces in the first phase, which would run until the end of this month. They are at Phetchaburi, Udon Thani, Chiang Mai and Buri Ram.
They will be the first strategic provinces and cover the different regions of the Kingdom. The selection of strategic provinces is based on the readiness of local business communities including their infrastructure.
Thapana said that all 18 strategic provinces, representing the 76 provinces of Thailand (excluding Bangkok), will be selected by the end of this year for the setting up of local social enterprises, with one holding company in charge of the transfer of overall policies and business visions.
"The success factor of rural economic development will be not only from the perfect combination between the government sector and major private companies, but also small and micro community enterprises," said Thapana.
"I myself cannot set any medium or long-term target for the social enterprises on what they will be in the future. Those social enterprises do not belong to me but to all small and micro enterprises in the community."
4 Апр. 2016