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 to list beer companies in quest for cash
The unprecedented divestments in two state crown jewels, the makers of the much-glugged Saigon and Hanoi beers, are expected to net as much as US$2.2 billion.
The sale comes as part of long-promised reforms to privatise bloated state firms, which official figures show contributed about one third of the country's GDP last year.
It is hoped the reforms will set the communist country back on track to meet its ambitious economic targets and jumpstart growth which has slowed this year.
For Vietnam's government, beer is a logical place to start.
With a population of 93 million people, the country is one of Asia's leading swillers of beer.
Vietnamese consumed more than three billion litres of the cold stuff last year, according to Euromonitor marketing firm.
That thirst has piqued interest from foreign brewers, eager to tap growth markets at a time when sales in many developed markets in Asia are forecast to plateau.
"Vietnam has one of the fastest growing beer consumption markets in the world, and that's obviously an appeal," said Kevin Snowball, CEO of PXP Vietnam Asset Management in Ho Chi Minh City.
VIETNAMESE SAY KEEPING FLAVOUR OF BEER IS KEY
The government said this month the two companies, Habeco and Sabeco, would be listed in the first three months of 2017 and would be open to local or foreign bidders.
For the Vietnamese who crowd into the open-air bia hoi markets during lunch, dinner and for some, in between, privatisation promises to keep the good times rolling -- as long as the buyouts don't mess with flavour.
"I don't want beer Hanoi to be affected by the taste of Carlsberg, I don't want beer Saigon to become so similar to a Sapporo... the key is to keep the distinctive taste of the beer," said Duc Thang, 48, speaking over a glass of cold brew.
Like millions of others across the country, Thang comes to the bia hoi to unwind.
"At a bia hoi you can talk about so many things -- you can chit-chat, talk business, family problems. It's easier to talk when you have one or two beers."
Some major names already have a foothold here -- Heineken has about 17 per cent of the market, competing with other players like Carlsberg and Sapporo -- and reports say Thailand's ThaiBev and Singha Beer may now be ready enter the fray too.
But the sales could instantly transform a foreign buyer into a top brewer: Sabeco enjoys about 45 per cent market share, while Habeco has 17 per cent, according to Euromonitor.
The government says it will sell its 90 per cent stake of Saigon Beer Alcohol Beverage Corp (Sabeco) for US$1.8 billion, and its 82 percent stake in the Hanoi Beer Alcohol and Beverage Joint Stock Corp (Habeco) for US$400 million.
Both companies declined to speak to AFP.
'THE RIGHT TIME'
Economists say the government is selling the stakes because it is thirsty for cash.
Public debt hit 62 per cent of GDP this year according to official figures, and is climbing closer to the government-sanctioned debt ceiling of 65 per cent of GDP.
"It's the right time for the government to consider selling a number of state-owned companies to get more for the budget," economist Pham Chi Lan told AFP.
Selling off controlling stakes is also expected to help clean up corporate governance and boost productivity, which have not happened with piecemeal selloffs in the past.
"Many of these benefits will only come if there's a strategic investor that really takes on a majority stake," said Sebastian Eckardt, lead economist for the World Bank in Vietnam.
Some credit a new regime of communist leaders in power since April with making good on promises to privatise, but will wait to raise a glass until the deals are done.
"We're very positive on this, as long as it happens, because it's been talked about for a very long time," said Snowball.
24 Окт. 2016