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 counts the cost of trying to solve its drinking problem
By the time the liquor store on Kalavasah Teni road in the south Indian city of Madurai opens for business at 10am on Monday, a small queue of regular customers has already begun to form outside.
Within minutes, bottles fly off the shelves. By the end of the day, the shop will have sold about 600 bottles of alcohol and made about 100,000 rupees (£1,000). On bank holidays or during religious festivals, sales can be 10 times that amount.
The Kalavasah Teni shop is one of 6,800 in Tamil Nadu, and is controlled by a government-run organisation called Tasmac, which has a state-wide monopoly on alcohol sales.
Tasmac has seen an increase in revenue every year since 2003, when alcohol sales were taken over by the government. In 2014-15, Tasmac took in about 24,000 crore rupees (£2.4bn), more than a quarter of the state’s total income for the year.
Before Tasmac, alcohol was a taboo, and people had to travel to obscure places to buy it. In the past decade, the government has opened Tasmac shops across the state, even next to schools, temples and in residential areas. As a result, alcoholism is spreading. Rates of divorce, street crime and domestic violence are rising.
According to the World Health Organisation, nearly one in 20 Indian men have an addiction or alcohol-related disorder.
But now, chief minister Jayalalithaa, who introduced the monopoly in 2003, has promised to phase out alcohol sales completely after violent anti-alcohol clashes in the run-up to last month’s state elections. Since her swearing-in ceremony at the end of May, she has already announced that Tasmac’s retail hours will be reduced, and 500 stores closed.
In 2014, the neighbouring southern state of Kerala started phasing out alcohol, and this year, Bihar, one of India’s most populous states, declared an overnight liquor ban. Prohibition has been implemented to varying degrees in many states including Gujarat and Manipur, and Tamil Nadu has a history of periodically banning the bottle.
Nandhini Anandhan, a 24-year-old law student from Madurai, is at the forefront of a massive student movement in favour of prohibition in Tamil Nadu. She and more than 200 students from Madurai Law College have linked with students in all the major cities of Tamil Nadu to coordinate protests in response to alcohol abuse among young people.
“Nowadays, it’s not only college students – kids start drinking as early as year nine [age 13 to 14],” Anandhan says. “The government has ruined three generations.”
At Sellur Vattara Kalinjiyam, a women’s rights organisation in Madurai, almost all the women have a sister, neighbour or friend with a story about alcohol abuse.
At its headquarters, dozens of volunteers have been collecting signatures to urge the government to close all Tasmac shops. More than 5,000 people have signed the petition so far.
One of the women, Savitri (many people in the region use one name), says: “My husband earns 500 rupees a day. From that, he gives me only 50 rupees for the household expenses. If I ask for more, he shouts at me and beats me. My older sister has the same problem. Her husband hits her and the children when he’s drunk.
“When our sons see their fathers, they start drinking too – these are school kids. We want a total ban, and if the promises of the election are not met, we will go and start a riot,” she says.
For some women, easy access to alcohol has made public spaces inaccessible. One woman, Rajeshwari, says she avoids walking on roads with Tasmac shops. “The men stand outside the shop, crowded together. If we try to walk past them, they shout rude things. I don’t feel safe walking alone. Sometimes I change my route completely, just to avoid them.”
But outlawing the sale of alcohol will not be easy. Politicians have close ties to the alcohol industry in Tamil Nadu. Both Jayalalithaa’s All India Anna Dravida Munnetra Kazhagam party and the opposition Dravida Munnetra Kazhagam party have given licences to produce alcohol to close aides.
The alcohol ban raises questions about how the state plans to continue funding public services without cash from Tasmac shops.
Among the concerns is whether cuts will be made to services to protect women.
“There is no evidence from any country in the world, or any state of India, that prohibition directly contributes to the reduction of violence against women,” says Vikram Patel, an academic at the London School of Hygiene and Tropical Medicine.
“Even if it did, it would be the equivalent to banning cars to address road traffic accidents,” he says.
“Policies that combat the deep-rooted gender inequality in India, for example through empowering women with sexual and reproductive rights, must remain the most important strategy to reduce violence against women.”
Dr K Jothi Sivagnanam, an economist at the University of Madras, says the reason a decision to ban alcohol took so long is because of the contribution sales make to public and private revenue. A slow implementation of prohibition will buy time to find alternative revenues. “[The government] have a few options to collect revenue to replace that income. Their commercial tax department has huge scope to collect VAT on large business transactions. Stamp and registration duty has also been low because of undervaluation,” he says.
But he says, after the promises, the government will need to close Tasmac shops sooner rather than later, “or else the opposition parties will use this against them in the next election”.
The Guardian has made many attempts to contact the Tamil Nadu government for comment but no response had been received at time of publication.
13 Июн. 2016