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. ...
Empire Brewing Company Begins Distribution to China
CenterState CEO, an independent economic development strategist and chamber of commerce in Syracuse, New York, made a trip to China in early 2015 with various community partners. David Katleski, owner of Empire Brewing Company and president of the New York State Brewers Association, was one of the delegation members to go on the trip. The group spent seven days meeting with twenty-five organizations; which included government officials and private business owners. The goal of these meetings was to identify partnership opportunities, establishing strong business connections with China.
While in China, David Katleski met Mr. Ji, founder of the Jing Wei Fu Tea Company. The two executives hit it off despite their limited verbal communication and decided to collaborate on a tea beer. 12 kilos of Fu Tea from Shaanxi, China, were shipped to Empire Brewing Company in downtown Syracuse where master Brewer Tim Butler and Assistant Brewer Nat TenEyke incorporated the tea bricks into an original Empire Brew. Dubbed Two Dragons in honor of Katleski and Ji’s mutual Chinese calendar sign, the first test batch had an exceptional reception and Empire Brewing Co. knew they had stumbled upon something big. It wasn’t long before David had set his mind on international distribution.
Jing Zhang, a Chinese citizen living in Syracuse, NY, heard the Two Dragons story on the news and approached Empire Brewing Company with her expertise for Chinese distribution. Zhang was quickly hired as Empire’s official Export Specialist, spending her first day on the job flying back to China with Katleski. The pair traveled across the country with the fresh Two Dragons brew, building brand awareness and valuable business relationships. A member of the Chinese Home Brewers Association helped to introduce Katleski with the owners of the popular Beijing craft brewery, Panda Brew. Since their inauguration, Panda Brew has been interested in introducing quality American style brews to a market that is just beginning to realize their love for contemporary craft beer. Katleski experienced an instant bond with Panda Brew’s Master Brewer Dinghao Pan and co-founder Yu Xia. A partnership was formed, and Panda Brew eagerly agreed to distribute Empire’s beer throughout China, as well as making ‘e’ draft and bottles available at all their pub locations.
Today, Slo Mo IPA was the first of Empire Brewing Co.’s beers to be poured from the taps at Panda Brew. Two Dragons will arrive in China on the next shipment.
“It’s exciting to share our passion and love for craft beer with all Chinese beer lovers.” Jing Zhang, Export Specialist, Empire Brewing Company.
“The current craft beer climate in China reminds me of what I witnessed in New York State, and the US, a quarter century ago. I believe that the Empire beer brand has solid potential in China and it introduces NYS craft beer to the Chinese. Two Dragons is a very unique East meets West collaboration of an American Craft Beer and Chinese Black Tea. Our good friends and importer Panda Brew in Beijing China has brought our dream to export Empire beer into reality. The partnership with Panda Brew has been deeply fulfilling on many levels. Our (Empire Brewing Company) Mission is in the Bottle. And our business philosophy is to Grow Local, Craft Global. Both our Mission and our Philosophy are embodied perfectly in this venture.” David Katleski, President and Owner, Empire Brewing Company.
“Empire is such an innovative and vibrant company and that carries over into all of it’s beers. My personal favorite is the Black Magic Stout, it brings such a great full flavor. Two Dragons is another excellent example from Empire that conveys an open minded sense of brewing.” Yu Xia, Co-Founder, Panda Brew
“Empire Brewing Company’s growth into foreign markets is really an exciting moment, and one that is possible for so many in our region. Today’s announcement that Empire’s beer has landed and been tapped in China is the culmination of an opportunity that David Katleski was bold and ambitious enough to pursue following a trip to China with CenterState CEO back in 2014” said Robert Simpson, president of CenterState CEO. “David had the drive and determination to seize a new growth opportunity and to ensure its success. I’m proud that CenterState CEO was able to play a role in making it happen. Congratulations to David Katleski and the entire team at Empire on this new adventure.”
4 Ноя. 2016