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. Alcohol prohibition poor policy, it’s not a moral problem
These states join a growing list, including Gujarat, a clutch of northeastern states and Lakshadweep, in imposing a policy which is currently not practised in any country outside the Islamic world. That prohibition can win elections is a vivid reminder of the tragic social consequences of alcohol consumption in the form of household impoverishment, domestic violence and premature mortality. That these policies are completely at odds with history and public health science testifies to the failure of our commonsense.
There is no evidence to show that prohibition has ever had its intended impact. Of course, just as banning beef has reduced beef consumption, banning alcohol will lead to reduced alcohol consumption. But, there appears to be little or no correlation between, say, domestic violence or household impoverishment and prohibition. Instead, there is an enormous cost to society, and here I refer not to the obvious massive losses to the exchequer but to the criminalisation of the majority of people who drink sensibly to address the problems caused by the minority who do not. It is, in effect, equivalent to banning motor cars because a few drive rashly.
Prohibition is a very poor policy option to address the adverse consequences of alcohol abuse when compared with a range of more effective public health approaches. The most notable international example of the failure of prohibition is that of the US where a constitutional amendment implemented this policy in the 1920s, only to be revoked 13 years later. The reason was simple: The policies led to the criminalisation of an entire section of the population, from those who manufactured the product to those who consumed it. It replaced a way of life which is as old as mankind with a corrupt nexus of smugglers, police, politicians and bootleggers.
The story is no different in India. As any reader of this paper who has been invited to a party in Ahmedabad can testify, the truly remarkable thing about prohibition in Gujarat is the range of alcoholic brands which are served in private homes. Of course, this is restricted to the rich who bypass regulations by virtue of being able to buy “permits” on medical grounds and escape police harassment. Lisa McGirr argues in her recent book, The War on Alcohol, that the enforcement of prohibition in the US was intrinsically biased against the poor, the working class, immigrant communities, and the marginalised. Prohibition, like so many other policies imposed from the moral high-ground, typically by those who do not drink, disproportionately affects the poor who resort to illegally brewed alcohol when they want a drink, not infrequently leading to their death, and are more likely to be harassed by the police.
Prohibition is rejected by most public health scientists who know this field; even the World Health Organisation does not recommend it. The complete lack of a public health approach to alcohol abuse in India is illustrated by the way in which the government has permitted the shameless surrogate advertising of alcohol by corporations, for example, through selling “bottled water” under the same brand names as their much better known alcoholic beverages. Amongst the many crimes Vijay Mallya seems to have gotten away with, that he could run an airline named after the most popular alcoholic beverage in the country has been perhaps the most damaging of all in terms of its impact on the burden of disease in India.
India remains one of the few nations which still focuses entirely on an archaic de-addiction model, administered by the ministry of social justice and empowerment, to address drinking problems, adhering to a centuries-old idea of these problems being a moral disorder rather than a health condition. There is a total absence of effective counselling interventions for those who wish to control their drinking. Instead, we live in such surreal times that “medicinal grounds” is the one situation in which drinking is permissible in states where prohibition is enforced. Essentially, this means that a person who wishes to drink can obtain a permit, after paying the required fee to a malleable physician, because he is a sharabi and his life would be threatened without a drink. This, of course, is the precise group who in any other country would have been offered psychological or medical interventions to control their drinking!
So, let us be prepared for more criminal activity, more deaths amongst the poor fuelled by illegally brewed poisonous alcohol, more hard liquor being drunk secretly in dingy corners, more corruption in the police force and more misery for those who wish to drink sensibly.
Prohibition of substances which give pleasure to people does not work. Addiction is a health problem, not a moral one, and there are many proven strategies which can reduce its burden. The desire to address the serious social problems caused by a minority of those who consume alcohol by prohibition is a travesty of the experience of history and public health science. When Mizoram repealed prohibition in July 2014, 17 years after it had been imposed, its excise minister explained that he had proposed this bill so that “those people who cannot do without drinks can find good quality liquor at cheaper prices”. He also claimed that he had “asked god to prevent me from introducing the bill in the assembly if that is what he really wanted”. Clearly, god had commonsense. Do our politicians?
28 Апр. 2016