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. ...
Full closing report Brau Beviale 2010: Successful industry get-together
- 32,617* beverage experts in N?rnberg - high internationality
- Economic upswing stimulates investment decisions
„We exhibited for the first time together with Ziemann BMS-Maschinenfabrik, so the size of our stand increased again. The decision was exactly right - what a rush of visitors! All the industry's big names were there and the good talks led to a number of sales transactions. We have already made firm plans for Brau Beviale 2011.“Joachim Gunkel, Managing Director, Ziemann Group, Ludwigsburg
85 % of the exhibitors
will be there again at Brau Beviale 2011!
93% der Aussteller bewerten den Gesamterfolg ihrer Beteiligung an der
93 % of the exhibitors rate their overall success at Brau Beviale 2010 positively. 94 % made new business connections and 91 % are hoping for noticeable follow-up business.
„We have strongly focused our exhibits at Brau Beviale on SMEs, the basis of our success story. This concept was a success. We are very satisfied with the number of visitors and the quality of the talks, which in one case or another led to orders.“ Volker Kronseder, Chief Executive Officer, Krones AG, Neutraubling:
More information through attractive accompanying events
A visit to hall 7A at Brau Beviale 2010 was a must. Here the largest pavilion sponsored by the Federal Ministry of Economics and Technology in the whole of Germany in the current exhibition year presented 28 young innovative companies. Among the exhibitors:
Karin Loof, Sales Manager, Studio 55 International, Rantrum:„We have used Brau Beviale 2010 - one of our major exhibitions - to brief our customers in the beverage industry on new advertising media. We are looking forward to coming again in 2011.“
More than 20 suppliers and service providers in the „Energy & Water“ theme pavilion, which was organized together with the Competence Pool Weihenstephan of Munich Technical University, provided information on renewable energy, rational energy conversion, cogeneration units, contracting, disinfection, and recovery, analysis and treatment of water.
Ute Foellmer, European Sales Manager, Aquafine GmbH, Elmshorn: „Our business is the disinfection of water using UV rays. The exhibition was more international than we had thought. We welcomed many end customers on our stand, especially from Eastern Europe.“
The „Future Beverage Industry 20XX“ theme pavilion ventured a look into the future of the beverage industry. How can costs be cut? What technologies help to increase production? How can quality management be improved? Around a dozen companies presented visions and creative ideas for the future of the beverage industry in cooperation with the Versuchs- und Lehranstalt f?r Brauerei (Brewery Research and Training Institute) of Berlin. These ranged from new technology and software solutions and innovative sales aids to efficient logistics ideas.
Marco Di Muro, Project Management, Zeno Track GmbH, Vienna: „We are very satisfied with exhibiting in the theme pavilion. The feedback from the visitors was extremely positive. Especially the industry's big names were impressed by our tracking systems for forklift trucks. We were also able to use the proximity to related companies to initiate cooperations. So Brau Beviale was a complete success.“
47 % of the visitors definitely included a visit to the two theme pavilions in their tour of the exhibition.
955 beers for the European Beer Star Award - Consumers' Favourites
This popular international beer competition was launched jointly by Private Brauereien Bayern - the Bavarian private breweries association and honorary sponsor of the exhibition - and the German and European federations in 2004. 88 beer experts from 21 nations tasted and judged the beers in advance in the Doemens Brewing Academy on the basis of consumer criteria: What does the head look like? How does the beer feel in the mouth? How does it taste? Are the typical criteria for the kind of beer fulfilled? The beers were judged in 44 categories - from light beer to the new category of "ultra strong beer". Exhibitors and visitors at Brau Beviale 2010 who appreciate a genuine beer with character also had a substantial say here. They tested the gold medal beers on the first day of the exhibition and selected their Consumers' Favourites: Gold for Adriaen Brouwer Dark Gold, NV Brouwery Roman, Oudenaarde (B), Silver for Meinel's Weizenbock, Familienbrauerei Meinel GmbH, Hof (D), and Bronze for St?rtebeker Roggen-Weizen, Stralsunder Brauerei, Stralsund (D).
„Brau Beviale 2010 completely lived up to our expectations. Sustainable management, which is part of our company's philosophy, is perfectly represented here. Exhibiting at this event particularly enabled us to reach our SME customers and attract attention to our innovations - such as eccentric-support sunshades for the catering trade.“Tobias Jan Wenk, Gesch?ftsf?hrung WEBA-Fahnen GmbH & Co. KG, Baienfurt
PETpoint at Brau Beviale 2011
The next Brau Beviale takes place in the Exhibition Centre Nuremberg from 9-11 November 2011 - with an important new feature: The two leading exhibitions for the beverage industry, drinktec in Munich and Brau Beviale, are to cooperate in the PET segment. The PETpoint, the PET segment at drinktec, will also be present at Brau Beviale in N?rnberg starting in 2011. The background to the cooperation is the exceptionally fast innovation cycle in this segment. The organization of the pavilion rests in the hands of the drinktec team in Munich. The PETpoint 2011 will be marketed as part of visitor promotion for Brau Beviale. Volker Kronseder, Chairman of the VDMA-Fachverband Nahrungsmittel- und Verpackungsmaschinen (German Food Processing and Packaging Machinery Association), Frankfurt: „The cooperation in the PET segment suits us fine, benefits our industry and naturally both exhibitions too.“
Read the exhibitors' views on Brau Beviale 2010 too.
* The figures for exhibitors and visitors are checked and certified by the Society for Voluntary Control of Fair and Exhibition Statistics (FKM), Berlin.
About the N?rnbergMesse Group
N?rnbergMesse is one of the 20 largest exhibition companies in the world and among the Top Ten in Europe. The portfolio covers some 120 international exhibitions and congresses and more than 30 sponsored pavilions at the N?rnberg location and worldwide. Every year, some 25,000 exhibitors (international share: 33 %), 805,000 trade visitors (international share: 16 %) and 315,000 consumers participate in the own, partner and guest events of the N?rnbergMesse Group, which is present with subsidiaries in China, North America, Brazil and Italy. The group also has a network of 43 representatives operating in more than 80 countries.