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. ...
…and real monks
All four Franciscan monasteries with breweries are situated in Bavaria. One of them – Kreuzberg, was founded on a slope of the mountain of the same name which became a known place of annual pilgrimage not only for Catholics, but also for half a million tourists. They climb a 928 meters high stone stairway to enjoy views from "The sacred mountain of Francs", to see live history and to try abbey beer.
The monastery, founded in 1692, and the Klosterbrauerei Kreuzberg brewery opened in 1731 still belong to the monks of the Franciscan order. The monastery endured the period of secularization rather easily, all possessions remained in property of Franciscans. But for some time beer stopped being brewed in the monastery, production was resumed in 1954 and several times its modernization was carried out. The annual output volume is small – about 85 000 dal of which about one third of beer is sold at a restaurant, the main part of beer is packed in 5-50 liter barrels for private buyers – visitors of the monastery, and a small part goes to other Franciscan monasteries.
In the settlement of Sachsenkam in the south of Bavaria the monastery of Franziskanerinnenkloster Reutberg is located, which became a popular place thanks to a beer garden overlooking the mountains. Today the tertiaries live in the monastery – people who accept vows to live according to spiritual requirements of the order, but aren't ready to leave secular life completely.
The first structures of the monastery were built by Capuchins in 1618, but later sisters of the Franciscan order settled there. In 1677 a brewery started working at the monastery and in 100 years a great number of visitors were drawn there. The secularization of 1803 interrupted the normal life of the monastery, but in 1835 the monks returned, and the brewery resumed its work. Problems with profitability after World War I led to a short halt of production. But in 1923 the monastery again started production of beer, this time in cooperation with farmers. Over the years the Klosterbrauerei Reutberg brewery turned into quite a large enterprise, remaining one of the few brewing cooperatives in Bavaria.
The monastery in the city of Mallersdorf is known because its brewery is operated by a woman. Sister Doris Engelhard in 1969 got the diploma of a brewer and since then every Sunday brews beer. She is one of the nuns of a big female community of the Franciscan order numbering more than 400 people.
From the moment of foundation of the monastery in the X century and to its secularization it belonged to the Benedictine order. But even after the property was taken from the monks and sold out, the brewery continued to work as a part of a farm. In 1869 the community of Franciscan sisters redeemed part of the monastery. In 1881 beer production was resumed, and in 1913 sisters got the rest of the former Benedictine abbey. Volumes of output of Klosterbrauerei Mallersdorf are very small, and its range consists of several main sorts and a seasonal sort of beer.
Franciscan community of Sankt-Josefskongregation Ursberg lives in the Bavarian town of Ursberg. Beer was brewed in Kloster Ursberg as early as 1623, but as a result of secularization the monastery was disbanded. At first a court worked in its premises, and then a shelter and a hospital for mentally challenged people were opened there. To look after the patients a big Franciscan community of sisters was also restored. In the hotel for pilgrims and tourists the brewery and Klosterbrauhaus Ursberg restaurant work, and in the summer visitors can have a rest and eat in a beer garden at the restaurant.
The Augustinian Order is the general name for groups of the Christians living according to Saint Augustine's Rule. This rule is one of the first sets of rules for people who would like to lead spiritual life similar to monks. The Rule of Augustinians had a great influence on formation of a stricter Rule of Benedictines.
The founder of Protestant church himself belonged to the Order of Augustinians – Martin Luther who broke considerable part of governors, priests and flock away from Rome. After the order’s blossoming in the XVI century when it totaled to 30 000 members, the Reformation and the French revolution practically destroyed it, and younger Catholic movements adopted the dominating role. Therefore today there isn’t much that speaks about numerous monasteries of Augustinians in the late Middle Ages, many of which brewed beer. We found a mention only of four operating breweries in Germany which have some relation to Augustinian monasteries.
One of the breweries was founded in 1839 by a tavern keeper from the city of Eschwege, the State of Hessen. In 1875 the equipment for beer production was transported to the empty premises of the former Augustinian monastery which was bought by the owners of the brewery. And in 1908, as a result of merges, the company which received the name Eschweger Klosterbrauerei was formed. Production volumes of the enterprise are quite great – up to 1 million dal of beer. The majority of beer sorts emphasize continuity of the company to Augustinian brewers.
The second brewery is connected with the monastery in Bavarian city of Munnerstadt which in 1297 was founded by Augustinians. It is considered that beer in the monastery started being brewed in 1381. Kloster Munnerstadt did not fully repeat the sad destiny of many monasteries in medieval Europe. Country revolts of the XVI century were especially cruel in Franconia * and monks had to escape, and their structures were destroyed. But in 1652 the first four brothers returned, and in 10 years the construction of a new building of the monastery began. During secularization the monks didn't lose their property, and over the years the monastery thanks to efforts of a great number of craftsmen became more beautiful, having turned into "a pearl of Franconian Rococo".
* Northern areas of Bavaria
In 1978 the monastic brewery was leased to individuals, and in 2005 the Rother Brau Company began production of beer for the monastery under the contract. In 2010 Rother Brau, as far as we know, acquired exclusive rights for the use of the monastery’s name and production of beer at the monastic brewery itself was phased down. Today the company bottles Klosterbrauerei Munnerstadt Kloster Urstoff beer with the image of a company of four cheerful monks.