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. ...
Vietnam. Heineken Buys a Brewery From Carlsberg in Southeast Asia’s Thirstiest Beer Market
With a thriving street-side cafe and bar culture, young population and rising middle class, Vietnam is luring brewers such as Heineken, Thai Beverage PCL and Asahi Group Holdings Ltd. to expand in the country. Interest is also being piqued by the government’s plans to offload lucrative assets, with Carlsberg in line to more than double its stake in state-run Hanoi Beer Alcohol Beverage Corp. or Habeco.
“The Vietnamese beer market is of great interest to other international players, such as those from Japan and Thailand,” said Dominic Scriven, chairman of Dragon Capital which manages about $1.5 billion of investments. “This in general is reflective of greater strategic interest across many sectors from foreign investors.”
Beer consumption in the Southeast Asian country jumped about 40 percent in 2015 from 2010, according to the Vietnam Beer Alcohol Beverage Association. Vietnamese guzzlers are expected to consume more than 4.04 billion liters of beer this year, the most in the region and up from 3.88 billion liters in 2015, according to Euromonitor International.
Economists predict Vietnam will be among the world’s fastest-growing economies in 2016 as it benefits from a manufacturing industry that’s grown in importance over the years. Its citizens of legal drinking age, 18 and above, is expected to increase to 72.4 million by 2021 from 68.7 million this year, according to Euromonitor.
“The growth of the beer market in Vietnam over the past few years is nothing short of amazing, and it shows no sign of slowing down,” said Andy Ho, who oversees $1.5 billion as the managing director of VinaCapital in Ho Chi Minh City.
Heineken in July acquired Carlsberg Vietnam Brewery-Vung Tau in the south Vietnam port city. Carlsberg Chief Executive Officer Cees’t Hart said the sale of the facility would allow the Danish brewer to concentrate on its existing territory in the northern part of the country, according to a Bloomberg transcript of an Aug. 17 earnings call.
Amsterdam-based Heineken, which is the second-biggest brewer in Vietnam, has seen its shares rise 0.5 percent year to date, while Carlsberg, headquartered in Copenhagen, rose 2 percent. The Vietnam Stock Index rose 17 percent over the period.
“We have a footprint, which we would like to improve,” Hart said, referring to Habeco, based in the capital Hanoi in north of Vietnam, in which Carlsberg is awaiting the government’s go-ahead for it to raise its 17 percent stake to 30 percent. “With regards to Vietnam, indeed, we focus on the territory where we are.”
Another attraction of Vietnam’s beer market is that it’s less dominated by local brewers compared with Asian countries such as Japan and Thailand, where home-grown brands take up about 90 percent of volume, said Euromonitor analyst Andrea Lianto. By contrast, Vietnamese brewers accounted for 63 percent total volume shares in 2015, giving foreign companies room to grow, she said.
Still, there’s risk for foreign investors as Vietnam is being hit by the worst drought in 30 years and falling oil revenue, making the country’s 2016 target for growth of 6.7 percent “hard to reach,” Vu Hong Thanh, head of the National Assembly Economic Committee, said last month. The economy is expected to expand at 6.3 percent this year, according to the median estimate of economists surveyed by Bloomberg.
Vietnam’s government is also considering selling as much as 100 percent of its stake in state-owned Saigon Beer Alcohol Beverage Corp., known as Sabeco, a long-awaited divestment that has attracted interest from Japanese and European brewers in the past.
Sabeco, brewer of Saigon Beer and 333 Beer, is the country’s largest brewer by sales with 40 percent of the market last year, followed by Heineken and Habeco with 20 percent shares each, according to Nguyen Van Viet, chairman of the Vietnam beer association. Carlsberg is in third place with 10 percent, he said.
“Urbanization there is still increasing pretty fast. The level of premium is not where it is in other countries even in Asia,” Heineken Chief Financial Officer Laurence Debroux said in an Aug. 1 earnings call. The Dutch brewer’s performance in Vietnam has been “stunning,” she told Bloomberg Television.
29 Авг. 2016