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. ...
Philippines. San Miguel Brewery sees strong profits
“I think SMB is doing very well [because] for the first quarter alone, net income is P4 billion. And that’s not the peak season yet, usually Christmas season and summer,” its Chairman Ramon S. Ang told reporters after a stockholders’ meeting in Pasig City on Monday.
The beer subsidiary of San Miguel Corp. managed to grow its net income by 23% from the P3.3 billion posted a year earlier, as new campaigns further boost consumption of its products.
The company’s revenues rose 23% to P23.3 billion, while sales increased 25% to P20.3 billion, following a 25% growth in volume to 51 million cases.
“In the Philippines, the company introduced new campaigns backed by consumer and trade programs to strengthen market leadership and further generate consumption,” SMB noted in a statement.
Net income from the company’s Philippine operations alone jumped 18% to P3.8 billion in the first quarter of the year.
SMB also registered improved results in 2015. The company posted a net income of P13.5 billion, after increasing its consolidated revenues by 4% to P82.4 billion and operating income by 3% to P22.6 billion.
When asked about expansion plans for the beer business, Mr. Ang said: “The beer business does not need too much expansion or what. It’s already doing very very well.”
Ang is bullish about its premium beer and non-alcohol beverage business this year.
“We have 97-percent market share… In fact, our SMB premium beer is doing very, very well. Even in international market, our SMB premium is doing very, very well. We are in every segment,” he said.
Mr. Ang also downplayed the recently announced joint venture of rival Asia Brewery, Inc. and Heineken International B.V. for the local production of the latter’s products.
“In the beer business side, SMB does not need to do anything. We have been competing with every major beer maker in the world, none of them were successful in competing with us in the Philippines,” he said.
SMB is also expected to continue turning profits amid the liquor ban proposed by president-elect Rodrigo R. Duterte.
“Liquor ban is nothing new for us. Our volume in Davao is not affected at all. The liquor ban is up to 1 a.m. or 2 a.m., it has no effect on us,” Mr. Ang said.
1 Июн. 2016