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. ...
China’s CR Beer says cost controls boosted first half profit by 45pc despite lower sales
CR Beer reported a net profit of 605 million yuan compared with 417 million yuan for the same period a year earlier, while revenue dipped 1.8 per cent to 15.21 billion yuan, according to the company’s filing to the Hong Kong exchange. The revenue figure fell short of analyst consensus estimates of 19.61 billion yuan.
The state-owned beer maker, which co-owns the world’s largest selling Snow beer brand with London-based SABMiller, blamed the flagging economy and severe flooding across many parts of the country as factors pressuring the company’s earnings, but highlighted cost control measures that boosted profitability.
“We expect a slower growth in sales volume than before and progressive consumption upgrades in the future,” said Chen Lang, chairman of CR Beer, which is a subsidiary of Hong Kong-based state-run conglomerate China Resources.
“Riding on the group’s track record in mergers and acquisitions, we will evaluate potential investment opportunities to expand our business and extract value through synergies,” Chen added.
Zhu Danpeng, an associate with China Branding Research Institute, said; “The entire beer market is struggling in China, but CR Beer fares better than its domestic peers as it receives solid backing from the government when competing with foreign rivals such as AB InBev.”
Before the results announcement on Friday, CR Beer shares edged down 0.26 per cent to settle at HK$15.60 by the lunchtime break. The shares have risen 22.8 per cent in the past six months.
No interim dividend was declared, as was the case a year earlier.
In July, CR Beer raised HK$9.5 billion to buy the remaining 49 per cent stake in China Resources Snow Breweries, a joint venture with SABMiller, and to gain full control of the Snow beer brand. The acquisition of SABMiller’s stake is anticipated to be completed by the end of this year.
The mid-to-high-end Snow brand is the world’s largest selling beer, accounting for 23.2 per cent of the beer market in China in 2014, outpacing its smaller rival Tsingtao Brewery and AB Inbev’s Harbin Brewery, according to research firm Euromonitor.
But CR Beer is facing a shifting preference among middle class Chinese consumers who are turning to foreign brands such as Denmark’s Carlsberg and AB InBev’s Budweiser in the premium market segment.
A merger and acquisition frenzy has swept across the global beer market, with AB Inbev’s US$108 billion takeover of SABMiller set to create the world’s biggest player, while CR Beer revealed in July its interest in buying smaller peers at home or abroad.
“CR Beer may be eyeing companies like Beijing Yanjing Brewery in this wave of consolidation,”said Zhu. “The endgame will be that the domestic market will be dominated by a single player.”
Shenzhen-listed Beijing Yanjing Brewery is the country’s third-largest beer maker. The Beijing municipal government-backed brewer was said to have been reaching out to companies, including overseas ones, for a potential stake buyout since early 2015.
19 Авг. 2016