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. ...
Myanmar. Draught law causes beer station panic
At around 9pm customers were relaxed as they held mugs of draught beer, while the sound of calls for new orders could be heard clearly along the street.
But inside Maw Shwe Li pub, manager U Tin Shwe was panicked and confused.
Earlier that day he had received a letter from the ward administration office warning him to stop selling beer on tap. Ward administration offices are under control of the General Administration Department, which is overseen by the military through the Ministry of Home Affairs.
Bar owners holding a FL17 licence can no longer serve pump beer, the letter said, and those found breaking the rules will be punished according to the law.
“Last week, the township administrator held a meeting with beer stations and told them that FL17 license holders can no longer sell pump beer, then today I received this letter,” he said, holding it out. “I don’t know what to do. If they want to reduce the number of beer drinkers, they can raise taxes.”
Most beer stations across the country have served draught beer for many years under an FL17 licence, though officially this is prohibited by law.
U Tin Shwe said that FL17 holders have always been allowed to sell all types of beer including foreign liquor, adding that most beer stations pay K2.4 million each year in licensing fees.
Of the approximately 7000 bars and restaurants that sell tap beer today, only around 2500 hold a FL9 or FL10 licence specifically allowing them to sell draught beer, while the other 4500 operate under a FL17 license.
Pump beer is typically 20 to 30 percent more profitable than packaged beer and, when available, is almost always the preferred choice for consumers, as it is better value and perceived as fresher than packaged beer.
U Hla Win Tin, director of the General Administration Department, said yesterday that the home affairs ministry will not issue any new liquor licences for now, a decision that will come as a major blow to beer station owners forced to stop serving.
A directive from the ministry restricting draught beer sales to establishments holding an FL9 (Foreign Alcoholic Liquor) or FL10 licence was given in the first week of December last year, he said, and has only recently been enforced in regions such as Yangon.
Those hoping to get hold of an FL9 or FL10 licence, or even an FL17 licence, need to wait until someone else goes out of business.
The new direction taken by the Ministry of Home Affairs on draught beer has provoked panic among beer station owners across the country. Local sources who asked to remain anonymous told The Myanmar Times that in Magwe Region more than 50 pubs have been closed for selling draught beer with a FL17 licence, though these reports could not be independently confirmed.
Anthony Clark, managing director of Myanmar Carlsberg Company said he is not sure who will benefit from the change in policy.
“It is unclear what the benefit is to the government or consumers, to have ‘pump-beer’ outlets licensed separately from ‘non-pump beer’ outlets. However this has a material impact on bars and restaurants, many of which rely heavily upon the income they make on pump beer,” he said yesterday.
Under the old system it was understood, and common practice, that bars and restaurants with FL17 licences would be entitled to sell beer in any form.
“This is potentially disastrous for bars and restaurants that hold FL17 licences as not only will they lose profit on any beer they sell, but they will also lose consumers, who will [migrate to] outlets that are allowed to sell draught. It is also bad news for consumers as they won’t necessarily be able to enjoy pump beer in their preferred restaurant,” Mr Clark said.
U Hla Win Tin said the Ministry of Home Affairs issued new guidelines on liquor licences and transport passes for distribution, in 2015.
“Pump beer is a separate item [to canned beer],” he said. “It is not a big policy change. The new directive was given in 2015 and we passed this message on to township administrators across the whole country, to let the stations know. I think some stations have already been informed.”
He added, “People face difficulties when policies change, it is quite normal. As our liquor policy clearly states, the number of licences must be reduced each year. In the past pump beer stations were operating without a licence – we are now trying to do things more systematically.”
Military conglomerate Myanmar Economic Holdings Limited, known locally as U Paing, owns a 45 percent stake in Myanmar Brewery, which held a tight grip on the beer market for many years until it was opened to foreign giants Heineken and Carlsberg. It now holds around an 80pc share in the beer market, largely through selling Myanmar Beer, the nation’s most popular brew.
Tetsuhiko Sato, deputy managing director of Myanmar Brewery, said beer station owners will need to comply with the rules. “We just have to obey and we are trying to obey,” he said.
Lester Tan, managing director of APB Alliance Brewery Company, which produces and distributes Heineken in Myanmar, said beer stations holding FL17 licences are now likely to apply for FL9 or FL10 licences, despite the fact that no more new licences will be released in the future.
“As a result of stronger enforcement of all laws, there is some hesitation within businesses, as owners will not sell beer without the proper licences. Many business owners are now applying for the correct licences,” he said. “We anticipate that this is a short-term issue ... For the moment, we are working with our beer station business partners to see how we can help to overcome the issue together.”
U Tin Shwe said in May when he bought a new FL17 licence, nobody mentioned that it would not cover the sale of draught beer.
“Our customers mostly buy draught. If authorities force us not to sell it, we cannot afford to continue,” he said.
The manager of Y2T beer pub in Kyauktada township said she has not yet received a letter telling her to stop selling beer on tap, and is waiting for clear instruction.
“We have heard the news that FL17 holders will not be allowed to sell pump beer. We hold this licence and so do most of the pubs around the township, but nobody has yet come and told us not to sell it,” she said.
Like U Tin Shwe, the manager of Kandawlay pub in Mingalar Taung Nyunt township also received a letter on July 11.
“We are a FL17 holder and received the letter today. But we cannot stop selling draught beer right now. We do not know what to do.”
13 Июл. 2016