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. ...
BrauBeviale 2016: Developments and trends on the beverage market – Focal point: beer
- Creativity, naturalness and convenience the focal point
- Beer the heart of BrauBeviale
- Spoilt for choice in beverage packaging
The beverage market remains exciting, there are now clearly not enough classic beverage variations for the consumer. So-called craft drinks are now already part of every segment. As a result, in addition to major groups, numerous medium-sized, small and the smallest companies are establishing themselves on the market, their declared objective is to offer quality instead of quantity – less is simply often more. But not for long, because then the European beverage trade world will once again be the guest in Nuremberg and enter into an exchange on trends, new products and innovations. From 8 to 10 November, the experts will come together at this year's most important equipment show for the beverage industry.
The following still applies: worldwide drinks consumption is continuing to rise. According to Canadean, in 2015 global beverage consumption reached approx. 280 litres per capita, that is around 13 litres more than the previous year. For 2016 the market research institute is predicting a further slight increase to 284 litres. The most drinks are consumed in Latin America (587 litres per capita) and North America (579), followed by Western Europe (542). Bottom of the international rankings is Africa with around 70 litres per capita. Regardless of which beverage we are dealing with – at BrauBeviale, producers, sales and marketing people, the retail and catering trade find everything connected with all aspects of the entire process chain: extending from the suitable raw materials through to efficient technologies and perfectly coordinated logistics right up to coherent marketing ideas and neutral tasting zones.
Beer sales in Germany constant
In 2015, soft drinks were the worldwide leaders in the beverage categories at around 97 litres per person. Among the alcoholic drinks the most successful were beer and cider. Around 28 litres per capita were drunk. (Canadean).
In Germany, according to the Deutscher Brauerbund (DBB, German Brewers Association), beer sales in 2015 were as good as constant. Total beer sales reached around 96 million hectolitres, almost 106 litres per capita were drunk. In the shandy drinks category the trend continues to be in decline. At four million hectolitres they accounted for about four percent of total beer sales. Germany is ahead of Russia, Great Britain, Poland and Spain as the largest European beer producer (Statistisches Bundesamt / Federal Statistical Office). Number one in the world is China ahead of the USA and Brazil. Generally, Asia alongside Africa represents the most interesting beer market for the future – at least as far as annual average growth is concerned: by 2020 this is set to reach three percent in the Asian region, in Africa even five percent. In North America, Eastern and Western Europe in contrast, Canadean assumes a maximum increase of one percent.
It must be high quality and diverse
In the past few years creativity has become a familiar expression for the brewing industry – this is practically the case worldwide. In this connection, the consumers are not only looking for beer, which is brewed using natural ingredients, but at the same time, increasingly diverse flavour experiences and new creations all the time – with a preference for regional producers. According to an Alltec study, there are today already more than 10,000 craft breweries worldwide. 86 percent of them are approximately equally divided between North America and Europe. The top ten nations for craft breweries are the USA, Great Britain, France, Italy, Russia, Canada, Switzerland, Germany, Brazil and Japan. A survey conducted by Mintel shows that the German population is increasingly embracing craft beer. Whereas in 2012 only one percent of beers newly introduced to the market came from the craft beer sector, in 2014 it was already 12 percent and in 2015 almost 20 percent. In addition, in October 2015, Mintel established: in the six months previously almost one quarter of German beer drinkers had bought a craft beer for private consumption and no less than 16 percent had ordered such a beer in pubs and restaurants. Regionality and flavour diversity are the key aspects appreciated here.
Creative Beverage Culture the trend theme
Inventiveness and exceptional flavour are also central elements at BrauBeviale, for example in the Craft Beer Corner. There, at five bars, each on a different theme, sommeliers are offering guided tasting sessions: hops, malt, yeast, specialties and different glass designs for different types of drinking enjoyment. Trade visitors from the catering sector and retail trade in particular will have the opportunity here to discover exceptional beers with professional guidance and assistance on an impartial basis. A further tasting bar is offering premium spirits. There is also a highlight on the theme of international beer diversity: the award and presentation of the European Beer Star initiated by the honorary sponsor of the fair, the Private Brauereien Bayern (Association of Private Bavarian Breweries). A tried-and-tested, popular feature is the tasting of the Consumers’ Favourites on the first day of the fair. And for anyone who has still not had enough by then, they can enjoy even more freshly pulled craft beers at the Schanzenbräu & Friends after-show party in an informal atmosphere. They can combine this with some finger food from the participating food trucks – and the evening is then complete. The trucks are heralding the SFC Street Food Convention, which will open on the last fair day of BrauBeviale. At the European MicroBrew Symposium, which is being organized in collaboration with the Versuchs- und Lehranstalt für Brauerei (VLB, Research and Teaching Institute for Brewing), on the day before the fair, the fans of Creative Beer Culture will already be in an exchange with each other on current issues from practical applications: trends, markets and technologies. For the first time, the VLB is also organizing a European MicroDistilling Symposium for interested parties from the world of spirits. Thanks to the designated exhibitor track on the Creative Beverage Culture theme, the trade fair visitors will be able to quickly find their way around the eight halls.
Beverage packaging – it is all about the container
A question, which is repeatedly raised across all the beverage sectors, is that of the container used. Traditionally it is: cans, glass or PET? But recently there have also been increasingly frequent discussions in the beverage sector on the theme of pouch packaging. It is light, easy to transport and promises convenient enjoyment. For water, the bottle – especially PET – continues to be the container of choice. Juices and nectars are most frequently available in carton packaging, followed by the PET bottle. Particularly as far as craft products are concerned, drinks cans and glass bottles are currently experiencing a comeback.
BrauBeviale is presenting a diverse range covering all aspects of the beverage packaging theme: extending from packaging materials and supplies through to packaging ancillaries up to sealing and closing systems. In addition, [email protected] is offering attractive solutions covering the entire PET value-added chain. Anyone who would like to be purposefully directed to specific exhibitors and ranges on the PET theme, can follow the designated exhibitor track.
International expertise in the beverage sector
In addition to BrauBeviale in Nuremberg, NürnbergMesse is also demonstrating its expertise in the beverage industry on an international level. In this connection, following a successful premiere last year, the second edition of Beviale Moscow, an equipment show mainly for the Russian and Eastern European market, will be held from 28 February to 2 March 2017. In addition, we also have to welcome the newest project in the portfolio: the China Craft Beer Conference & Exhibition (CBCE) on 26 and 27 May 2016 in Shanghai. Other projects are in the pipeline.
20 Июн. 2016