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3-2019

Russia: Positions of Brewing Companies

The 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 brands

In 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 2019

During 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.

Protestant beer

42Protestantism arose in Europe in the first half of the XVI century as a result of Reformation, as a reaction to escalated problems of Catholic Church. Since then, as a result of detaching the fragments from the Roman church and splitting within itself an enormous amount of different flows of Protestantism appeared.

In the course of collision with the Roman church Protestantism became firmly established in the countries of Northern Europe and became a dominant religion there. In the same region beer wins a competition over wine, as wine industry cannot develop because of cold climate. But, despite that and abundance of old brands, their names practically do not intersect with Protestant churches. There is a row of reasons why that happened.

40Most Protestants reject monkhood, propagandizing secular living in accordance with the Bible, although some confessions have communes similar to monasteries. Therefore, the concepts of "monasterial/abbey" beer and Protestantism are not very compatible.

Positive attitude towards entrepreneurial spirit and liberal looks inherent to the Protestants on the whole provide possibilities to producers wanting to brew "Protestant" beer. But the generalized advertisement association would be strange because of the great number of external forms of Protestant church.
And the names of separate Protestant churches are used for nonalcoholic products, but rarely for beer, on moral and legal considerations. One of the few examples is The Thirsty Quaker brewery from Jersey, USA, that besides the name uses a recognizable image of a Quaker’s hat on its logotype.

39Protestant church attributes are usually taken to the minimum. Well-known names and religious characters that potentially can be used by marketing specialists of brewing companies are limited too. It is because most Protestants don’t have the division into the clergy that is close to God, and the laity, therefore there are not as many reverent saints as in a Catholicism and Orthodoxy. Rather there are bright images and people who laid the foundation of some flow of Christianity. Their names potentially can be used in the naming of beer.
Such example is the Black Abbey brewing company, located in Nashville, USA. Characters of monks-brewers are replaced there by "beer fraternity". It is further needed to quote the uncut legend of Black Abbey Brewing Company itself, which tied up the story of Martin Luther and brewing:

«St. Anne, help me! I will become a monk!” Fearing he was suffering God’s judgment, Martin Luther uttered these words while trapped in a fierce thunderstorm in Stotternheim, Germany in 1505. True to his declaration, the onetime law student soon joined the Augustinian monastery in Erfurt, Germany. A few years later he relocated to Wittenberg’s monastery, The Black Cloister, and it was there that he penned his famous Ninety-Five Theses. He nailed the document, which boldly challenged the church establishment, to the Castle Church doors in Wittenberg on Oct. 31, 1517. So began the Protestant Reformation.
41After years on the run as an outlaw, Luther returned to The Black Cloister in 1525 and married Katherine von Bora, a refugee nun who had earned her brewing license before fleeing her convent. The couple received The Black Cloister building and grounds as a wedding gift, moved in and made it their personal residence, “Lutherhaus.”

Katherine created what became known as the best beer in Wittenberg. Using local ingredients and traditional techniques, Katherine crafted beers that were likely more similar to today’s Belgian-style ales than to the lagers for which Germany is famous.

What the Luthers established was, in the truest sense, a new kind of abbey: A community of fellowship bound together by hard work and fine, handcrafted ales. Given this history and our deep respect for the accomplishments and vision of Martin Luther, we settled on the name The Black Abbey Brewing Company.

The Black Abbey brews similarly inspired ales in Nashville, Tennessee. These ales are creative, accessible and unique. They rely on 600 years of brewing tradition, starting with styles that Martin Luther himself might have enjoyed».

 

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