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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.

Miass Machine-Building Plant

Individual approach and traditional quality 
Miass Machine-Building Plant was known as a defense industry enterprise before 90th. But the development of mini brewery market gave a start for applying high-end technologies and high-precision equipment in producing reliable breweries of high quality. Recently the company has celebrated 20-year anniversary of successful work on the Russian brewery equipment market.
Mr. Sergey Bobin, the specialist having 20-year experience of working at breweries and Chief of MMZ brewery design department, tells about the company.

Rep.: What results have you got by the 20-year anniversary?

These years were successful and fruitful for our company. Brewery production has become one of our favourite activity fields and one of the most prospective ones. For the recent years Miass Machine-Building Plant has become one of leading companies producing brewing equipment having a Russian market share of about 30% and made a great contribution to the Russian market of
beer- and nonalcoholic beverages. Such results would be impossible if we did not get a reputation of a reliable partner in brewery business.

Rep.: You say about the 30% market share, but what is meant here?

It means that we are leaders in number of breweries having been put into operation in Russia. All in all it is more than 170 breweries from Kaliningrad to Sakhalin regions, in CIS and some other countries. Nobody in Russia such number of partners.

Rep.: How did you manage to become the number one?

Our basic principle can be expressed like «individual approach and traditional quality». What we offer to our clients is not only modern equipment but a ready turn-key enterprise. Our customer gets everything — from a brewhouse design project to the brewing technology for the given equipment. So if you want to start or update your brewery business — just dial our number. Our high-qualified specialists are always glad to share the experience and give you any assistance regarding both technical and managment areas. Moreover, we give technical, marketing and sales support during the whole period of equipment operation, organize the staff training. I’m very pleased that after years of cooperation the business relations with many of our customers became a true friendship.

Rep.: What is the difference of your equipment from its imported analogues?

Speaking of the European manufacturers — it will be more attractive price. When a customer buys some Czech or German equipment, he overpays for a wellknown brand or a talked-up trade name. When designing our breweries, we have taken a classical German brewery as a basis which means that our equipment brewery technology corresponds to the classical brewery traditions. We use only high-quality materials made by well-known companies at our brewery production. It is not acceptable for us to save on quality of metal or spare parts for reducing the brewery final cost price as some Chinese manufacturers do. Only reliable equipment can ensure the long-term success of your business.

Rep.: What would you say to those who are only thinking about buying brewing equipment?

Remember that when buying a brewery you got not only a successful turn-key enterprise of high profitability but also an exciting business. Somebody may fulfill his long-standing dream about his own brewery; somebody may discover a new wonderful world for himself and his clients. And, of course, opening your own brewery, you can make a contribution in the revival of abeer drinking culture!

Mr. Igor Krivosheev, director of BeirBach brewery, Novosibirsk (brewery having capacitance of 2000 liters/day)

Brewery equipment produced by Miass Machine-Building Plant is designed at basis of traditional German technologies and allows brewing live beer of the highest quality. Visiting Germany often, I have a chance to compare the taste of our beer and the taste of local German sorts. And each time I got additional evidence that our beer is of high quality. BeirBach beer brewed at the equipment made by Miass Machine-Building Plant has rich taste which is inferior to none European sort. In 2010 our brand name live unfiltered beer was awarded a grand gold medal for perfect quality at the ‘Siberian beer fair’, a specialized annual exhibition, so we can say that our beer business is developing successfully and we are planning further brewery extension.

Miass Machine-Building Plant

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