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. ...
Beviale Moscow 2019: Renewed growth and upbeat mood at Eastern Europe’s trade show for the entire beverage chain
Following the successful event, Thimo Holst, Project Manager Beviale Moscow, voiced his satisfaction with the KPIs: “With this fourth round, Beviale Moscow has once again taken a significant step forward. It has grown even more and is bigger than ever this year!” But it is not just the size that matters. “We are delighted that despite the somewhat more difficult market conditions, more and more exhibitors are recognising and wanting to tap into the significant, undisputed potential of the Russian and Eastern European beverage industry.” This was also reflected in the many exhibition stands displaying numerous exhibits and in some cases large installations. “The good mood at the venue underscores the positive and connective nature of Beviale Moscow,” adds Holst. Some 97 percent of the exhibitors polled were satisfied with their participation in the event.
Beer, pivo – the amber nectar at its best
Beer and brewing was a key topic once again this year. The official presentation of the Russian beer prize ROSGLAVPIVO, which was launched at Beviale Moscow 2017 by the Barley, Malt and Beer Union in collaboration with Private Brauereien Deutschland e. V., is set to become a tradition on the first day of the fair. 80 breweries entered 300 different beers into the competition, that is almost twice as many as in the previous year. The gold, silver and bronze awards were awarded in 24 categories. For more about ROSGLAVPIVO and a list of the 2019 winners go to: www.rosglavpivo.com. The established CRAFT DRINKS CORNER, which partnered once again this year with the Association of Beer and Beverage Market to showcase the diversity of hand-crafted beverages, was well frequented. Visitors were able to taste the latest types of beer from 20 breweries and also learned about the special features of each brewing process and the manufacture of craft drinks in general. The three-day VLB Seminar for Microbrewers, which is organised by VLB, the Berlin-based teaching and training institute for brewing and took place parallel to the trade fair for the fourth time, also focused on hand-crafted beer and specific technological and qualitative aspects of the brewing process.
Wine, soft drinks, beverage packaging – other highlights in the supporting programme
From suitable raw ingredients and custom technologies to efficient packaging, logistics or creative marketing ideas: with its holistic approach, the trade fair offers solutions for all segments. For example, at the Pavilion for Wine Production & Manufacturing, various wineries provided insights into cultivation, production, bottling and marketing. Each day, a different Russian wine region took centre stage: the Taman peninsula, Crimea, Dagestan. The Pavilion was organised in partnership with leading players in the Russian wine market: Union of Russian Winemakers, Simple Wine and imVino. The conference programme explored various topics including the criteria for quality wine. Another seminar focused on the statutory regulations for alcoholic drinks and discussed how the legislation can be complied with but also improved. On the topic of soft drinks, presented by the Union of Producers of Soft Drinks and Mineral Water, six speakers gave interesting talks on trends and prospects for the soft drinks market. In the Packaging Innovation Zone, the trade fair partnered with PETnology to provide visitors with food for thought, background information and proposed solutions for drinks packaging. The World Packaging Organisation also participated in the Packaging Innovation Zone. The conference programme included discussions on the future of PET, labelling and sustainable packaging.
Outlook for 2020
Project Manager Thimo Holst is already looking forward to the next round of Beviale Moscow: “Again we already have some ideas up our sleeve for further developing the event and aligning the concept holistically to the local beverage industry. We will now use the rest of the year to work on taking the next step forward in 2020. The next Beviale Moscow will take place in spring 2020. The exact dates will be announced as soon as possible.
Beviale Family: International expertise in the beverage industry
NürnbergMesse Group demonstrates its expertise in the beverage industry on an international stage: BrauBeviale in Nuremberg is one of the world’s most important capital goods fairs for the beverage industry. The Beviale Family is also active in about ten countries around the world in a number of event formats and cooperative marketing arrangements, all tailored to the individual target market. Members of the Beviale Family and network partners are operating in the key growth markets. The “international sponsors” of the Beviale Family are Doemens Akademie and the VLB (Versuchs- und Lehranstalt für Brauerei), the Berlin-based teaching and training institute for brewing. Other projects are in the planning phase. For details and dates go to: www.beviale-family.com
16 Мар. 2019