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. ...
Dynamic Development is Reflected at drink technology India
• India cements its position as a driving force for the industry
• Rapid rise in demand for alcoholic beverages and edible oils
Whether it is soft drinks, alcoholic beverages, dairy products or edible oils: the demand for beverages and liquid food products in India has been on the rise for years. Significant growth is also expected in the future. With more than 300 exhibitors and an extensive supporting program, drink technology India (dti) showcases the trends of the industry and provides impetus for the industry in India. dti will take place from October 24 to 26 at the Bombay Exhibition Centre in Mumbai.
The Indian beverage market is continuing to grow. The reasons for this include the rising population, a growing and consumption-oriented middle class and the continuing urbanization. The continuing spread of modern trade structures, such as supermarkets, also favors the growth in the beverage and liquid food sector.
In the process, demand from Indian consumers is increasing in all beverage and liquid food segments. According to the VDMA Food Processing and Packaging Machinery Association, the total demand for beverages is expected to increase by around 89 percent by 2022: from more than 27 billion liters in 2017 to over 50 billion liters. Richard Clemens, Managing Director of the VDMA Food Processing and Packaging Machinery Association, explains: “Local beverage production grew by 63 percent over the period from 2012 to 2017 and reached a value of approximately 13.8 billion euros in 2017. Further growth of nine percent per year is expected over the next few years.” In order to meet demand and continue to grow, Indian companies need appropriate machinery for the production, processing and packaging of beverages and liquid food. According to the VDMA, India is one of the most important sales markets in Asia for companies manufacturing such equipment. For Clemens, dti plays a key role for the Indian beverage and liquid food industry: “dti will provide numerous stimuli for investments into the growth industries.”
Alcoholic beverages are becoming increasingly popular
India currently ranks ninth among the ten largest buying countries for alcoholic beverages. Here, beer and spirits rank first and second. Beer is becoming increasingly popular, especially among the younger Indian population. According to the VDMA, sales are expected to increase by 22 percent by 2022. India is already the world's second largest market for spirits behind China. Here, the VDMA is expecting growth of just under 14 percent over the same period.
The supporting program of dti provides important stimuli with regard to the subject of alcoholic beverages. The place2beer, which takes place at dti for the first time, provides a comprehensive overview of the latest developments. It is an indispensable program item for microbreweries, medium-sized and industrial breweries as well as suppliers to catch up on the trends relating to beer brewing.
The second day of the Round Table Talks will be dedicated to trends and developments with regard to alcoholic beverages. Numerous speakers have already announced their presentations on the subject of “Trends and Developments in Alcoholic Beverages in India”. Representatives of companies and experts from research institutions will be among the participants. One of them will be Yogesh R. Bhandane, CEO of Boroton Research Centre Pvt. Ltd., with a presentation on the trends and needs of the Indian wine industry. A comprehensive overview of the Indian wine market will be presented by Gorakh Gaikwad, Associate Vice President at Sula Vineyards Pvt. Ltd. K. N. Gopalakrishnan, Head of Brewery & Processing at Carlsberg India Pvt. Ltd., will present the current trends in the Indian beer industry.
Continuing demand for edible oils
In India, the topic of fats and oils is on the rise. The demand for edible oils in India is currently growing rapidly. According to the VDMA, demand is growing faster than the country’s own production. Sales more than doubled between 2012 and 2017. The VDMA anticipates further growth in demand over the next five years: from just under 13 million tonnes (2017) to more than 19 million tonnes (2022). This corresponds to an increase of 58 percent.
dti is responding to this trend with the oiltech Forum. It will take place for the first time during the trade fair as part of the Oiltech Pavilions, powered by oils+fats. The Oil Technologists' Association of India (OTAI) is supporting the organization and design of the program. A half-day seminar will take place on the first day of the trade fair. Under its central theme ‘Challenges in Packaging of Edible Oils and Other Related Products‘, the seminar is subdivided into the topics ‘Regulatory Requirements, Current and Tomorrow’, ‘Latest Technology and Advancements’ and ‘Consumer and Brand Owner’s Perspective’. Leading experts from industry and research will provide insights into the world of oils and fats.
Growth in all segments of the beverage and liquid food industry
In addition to alcoholic beverages and edible oils, there are also indications of increased demand for other product categories. According to the VDMA the total sales of soft drinks, for example, are expected to more than double to 43 billion liters by 2022. For bottled water, the VDMA even forecasts an increase in sales by 156 percent. India is the third largest market for dairy products behind the USA and China—and at the same time the world's largest milk producer. According to the VDMA, an average annual increase in the demand for dairy products of 4.4 percent is expected for the period from 2017 to 2022.
The dynamic growth of the Indian beverage and liquid food market is reflected at the trade fair. The most important topics and trends of the industry will be highlighted in the supporting program. Visitors can find solutions and innovations to meet the developments of the Indian market from the approximately 300 exhibitors representing the entire process chain of the beverage and liquid food industry.
28 Сен. 2018