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. ...
GEA presents its solutions for ready-to-drink tea for the first time at the Pack Expo
“Are you ready for ready-to-drink tea?” That’s the question that GEA’s tea experts are asking at this year's Pack Expo International in Chicago, Illinois, USA (October 14–17, 2018, stand N-4927). GEA is targeting beverage producers who are continuously expanding their range of freshly brewed, ready-to-drink tea to align with the trend towards health-promoting diets. Consumers are becoming savvier and more demanding in terms of raw materials and quality. As a result, brands around the world are placing more emphasis on natural ingredients and regional flavors, which requires more dynamic product development among manufacturers. “Our customers are responding to this by bringing tea leaves directly into the plant as part of their process. In this way, a simple iced tea becomes a premium product,” says Steffen Rathmann, who manages GEA's non-alcoholic beverage business.
GEA offers solutions for the entire tea production process, whether in testing or the design, construction, installation and service of 24/7 turnkey plants, processing lines or modular technologies. At present, the development team has defined two priorities for the sector with the greatest optimization requirements for efficient and resource-saving production: the perfect brewing process and the treatment and handling of spent raw materials.
The US is a high-growth market for tea beverages
“The Pack Expo is an excellent opportunity for us to talk to our customers,” says Rathmann. “Even though the Asian market is the area where these tea beverages are traditionally sold most, it is in many other regions, including the US where there is strong demand for ready-to-drink (RTD) tea as a high-quality and healthy alternative. We have already received numerous requests for tea beverage production facilities in North America and want to keep our ear close to the market.”
According to Euromonitor International, the size of the global RTD tea market has grown by roughly 25% since 2011. Forty billion liters were sold in 2016 and this figure is expected to reach 45 billion liters by the end of 2022. Overall lifestyle changes, increasing disposable income and the move away from carbonated drinks, including to some degree alcohol and even juice, are the main drivers fueling this growth.
A pilot process facility for customer trials in the tea industry
GEA is highlighting to customers at the Pack Expo its new tea process and product development center in Ahaus, Germany. “At our facility in Ahaus, we not only present some of our core technologies – sifting, centrifuge clarification and thermal treatment – but also try to adapt our pilot process to match our customers' objectives, recipes and manufacturing processes in order to offer a tailor-made solution,” says Colm O'Gorman, responsible for GEA’s non-alcoholic beverages development and actively driving the RTD tea development initiative. Working together with GEA technologists and other process experts, customers can develop their systems and processes. “We experiment with different raw materials and formulations to be sure our customers get exactly the overtones and profiles they want for their teas. Having the capability to fill aseptically to IBC or small sample pouches, we can either send samples for further testing elsewhere in the GEA system, such as for evaporation analysis or to our extensive laboratory facilities at our Oelde site, or even back to the customer for further sensory analysis for example.”
Presenting GEA filling heads
“We do not use off the shelf, finished systems, especially for the production of RTD tea,” adds Rathmann. “It’s all about having a close development partnership with our customers.” Members of GEA's RTD tea team are therefore available for one-on-one meetings at the trade fair. As an important component for the entire tea production process they point out GEA’s filling competence and present GEA VIPOLL’s filling and capping heads for the multifunctional ALL-IN-ONE monoblock filler which can switch between bottles, cans and PET. “We are thus able to offer flexible and efficient filling solutions for glass/PET bottles and cans, in addition to GEA’s aseptic, ESL, hot fill and standard hygienic filling technologies. We can support our customers throughout the entire production process – from brewing to the finished product.”
GEA at the Pack Expo International, Chicago, Illinois, U.S.,
October 14-17, 2018, stand: N-4927
26 Сен. 2018