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. ...
The global outlooks of the legal market of cannabis are excellent. It is possible to simultaneously imagine dry law repeal and craft brewing boom but not in one but in several consumer categories. For alcohol is contained in liquids and cannabis derivatives can be in three physical forms.The value of legal market of cannabis and its products can reach 10% of the world beer market in five years, and in 2030-2040 even reach the same scope provided the current rates of legalization and development of market infrastructure remain at the same level. Cannabinoids are actively integrating into the food industry from chewing gum to beverages deforming the pharmaceutical and alcohol markets, they influence the trends of healthy lifestyle and beauty. ...
In 2015, the import volume grew by 60% to 541.7 mln litres. And the revenues of the importers grew by 41% to $575 mln. Judging by the deliveries’ volume, the import market share by volume increased by 0.5 p.p. to 1.1%.
As a rule, the import beer is attributed to the super premium segment (beer for more than 30 yuan for a liter) and form the biggest part of it. The estimated market volume of the import beer by value can be approximately appraised at 18 bln yuan or $2.9 bln.
In the recent years, the growth rates of the deliveries have remained high, though with a downturn trend. For the period from January to June 2016, China imported 310.53 million litres of beer. This year the growth in the first 6 month was 40% versus 63% of last year.
By the end of 2016, the share of import market can increase by 0.5 p.p. to 1.6% by volume. It can reach 3% by 2020 basing on the current trends. Here we should keep in mind that nearly a half of import consists of brands by foreign companies whose managements are not likely to start brewing beer in China. And even transnational companies are hardly ready to switch for full-scale local licensed production in the coming years.
The major trade partner is still Germany which in 2015 expanded its beer deliveries by ...% to ... mln. l. However, as the beer import is growing in general ever faster and becoming more and more multinational, the weight of Germany is decreasing the third year in a row (...% in 2013 and ...% in 2015).
Note, that for Germany itself, China is becoming one of the key export directions. As early as 6 years ago its share in the export structure of German brewers’ deliveries amounted to ...% and today it is already ...%. And this despite rather high for the Chinese price for German beer due to high logistics cost, special request to markings. Its average consumer price amounts to nearly $... a liter and from other EU countries it was $... in 2015.
The German origin of beer of its own outlines its quality and status, so in big cities the range of the proposed German sorts is rather wide, both by taste and price.
The list of main German beer suppliers to China includes companies, that are traditionally focused on export. The biggest among them is certainly Paulaner Brauerei and the positions of Brauerei Kaiserdom are also strong in China thank to a good distribution and comparatively low price. Besides, using the national sales system AB InBev successfully promotes its major German brand, namely Lowenbrau.
Along with Franziskaner, Oettinger, Kostritzer and other well known in Germany and the world brands, we can also find localized brands in special packages or even cheap import trademarks produced specially for China.
Other countries if we consider them together have sharply increased the import to China. A big contribution is made by global brewing companies. For instance, AB InBev Chinese portfolio includes Hoegaarden and Mexican Corona. Sales of inexpensive beer by Russian Baltika and South Korean brewing companies are growing. At the same time, a lot of trading companies from the EU, that resell beer and support the positive competition, are gaining ever more significance.
As we have already written above, several years ago the main sales channel was night clubs and expensive restaurants. However, the segment growth is to a large extent conditioned by retail formats. This in the first place hyper – and supermarkets, plus E-commerce contribution. The sales of import beer in kegs are gaining momentum.
Consumers saw imported beer in the best shelf spaces in many big supermarkets. Profits from selling imported beer are 5 times higher than from Chinese sorts which created a great problem for the local brewers.
At supermarkets one can find dozens of expensive, well-known import brands. The price for a 0.3 l beer can vary from ... to ... yuan and a half-a-litre bottle usually costs ...-... yuan. For example, in Beijing Century Lianhua Supermarket located beyond East Third Ring Road, the price for German beer Kostritzer is ... yuan for 500 ml and Belgian Hoegaarden costs ... yuan for 300 ml. Import beer is as a rule ...%, more expensive than Chinese premium and in some cases twice the price of a 300 ml can. For example, the same volume of Tsingdao costs ... yuan. Besides, one can find barrels of 5 l on the shelves.
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21 Сен. 2016