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. ...
Indonesia’s alcohol ban plan: Creeping Islamization or social ills solution?
A bill seeking to prohibit the sale and distribution of booze, as well as the consumption of drinks with alcoholic content between one and 55 percent, was last year put forward by two Islamist parties – the United Development Party and the Prosperous Justice Party.
But a failure to achieve unanimity among legislators and concerns raised by affected stakeholders have left the proposal hanging, with the House of Representatives still debating the issue, according to reports.
If the ban in enforced, however, it may still include exemptions for travelers, customary activities, and religious rituals.
Outside of tourist-friendly cities and islands, the Muslim-majority country is generally conservative – alcohol is already banned in the province of Papua and the port city of Surabaya in Java.
While many attribute the proposal to Islamic hardliners, the ban proposal could well be the result of concerns over alcohol-related health problems and social ills.
Ross Taylor, president of the Western Australian-based Indonesia Institute, told news.com.au that banning alcohol in Indonesia had support beyond conservative Islamist groups.
“There’s a lot of people in Indonesia right now taking the view — and they might not be wrong — that if you look at the Western world, and what alcohol is doing to young people, we don’t want that in Indonesia and we want to ban alcohol,” he said.
The push for the ban was likely further fueled by the gang rape and murder of a 14-year-old schoolgirl from Bengkulu, Sumatra in April, which was perpetrated by 14 young males reportedly high on ‘tuak’ (palm wine).
If the bill is passed and enacted into law, Hindu-dominant Bali in particular would be the hardest hit – the resort island is a mainstay holiday destination for tourists looking to have fun on the cheap, and obviously booze is a major part of that.
Should alcohol be taken out of the equation, however, those reliant on visitors for their livelihood are worried that their main source of income will dry up.
Taylor added: “In Bali, especially, there’s a very strong feeling that it’s the last thing you’d want to do, because if tourists can’t have a beer or wine on the beach, the potential consequences for tourism are going to be very severe indeed.”
Speaking to the Jakarta Post, Indonesian Hotel and Restaurant Association (PHRI) head Hariyadi Sukamdani said: “If the bill is passed, our business will be done. The tourists, who mostly come from Europe, drink alcohol all the time. It will be very inconvenient for them if they can’t find alcohol.”
According to Hariyadi, even recent efforts to regulate the distribution of alcohol has had a negative impact on businesses, while foreigners have complained about how difficult it has become to find alcoholic drinks.
“No matter how beautiful the country is, if they can’t find alcohol, they won’t want to come here,” he said.
There are also those who predict that if the ban is implemented, it would only backfire and cause an increase in the demand and consumption of contraband booze, which could pose health risks.
- “The problem, of course, is if you ban [alcohol], you then create this enormous black market and it causes a whole lot of other problems.” – Indonesia Institute president Ross Taylor
Last year, after Indonesia prohibited the sale of alcohol at mini markets and small sundry shops, the country saw a 58 percent spike in illegal alcohol sales, including ‘oplosan’ (Indonesian bootleg liquor) and other home-brewed drinks, reported the Sydney Morning Herald.
Due to the lack of regulation in alcoholic content, this has led to an increase in cases of tourists dying or ending up hospitalized after drinking illegal alcohol laced with potentially lethal amounts of methanol.
A spokesperson for the Association of British Travel Agents (ABTA) warned that banning legal alcohol sales could have the “unintended effect” of exacerbating the problem of illegal alcohol consumption.
“Rather than banning alcohol entirely, the Indonesian authorities should continue to crack down on the sales of illegally distilled alcohol containing methanol, which has caused the deaths of a number of holidaymakers and local people over the years,” they said, as quoted by MailOnline Travel.
Liquor sellers have pleaded with the government to consider imposing tougher controls on the sale of alcohol rather than a blanket ban.
Leni, 50, a member of Communication Forum of Indonesia Alcohol Drinks Sellers, told the Jakarta Post: “I don’t mind regulations. But don’t apply a total ban because it will kill my business. If you want to regulate selling, I would be ready to comply.”
The nation’s beer sellers have also argued that the drink should be exempted from the ban, as it was not linked to poisoning cases.
Despite the apprehension caused by the proposal, there are those who believe that an outright nationwide ban would not be implemented.
“In my view, I think that nationally, the bill won’t get up. I don’t think in the Indonesian government there’s enough support for it,” said Taylor.
“Moderation is a better way to go because they need tourists to go to Indonesia and tourists having a glass of wine or a Bintang [Beer] won’t do any harm.”
However, he added that individual provinces with more uncompromising governments may go ahead with the ban.
In 2015, it was reported that up to 10.41 million tourists visited Indonesia.
17 Авг. 2016