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. ...
Portinox. Quality as the base of the keg market leadership
Over the recent years, company THIELMANN PORTINOX has been demonstrating an exiting development dynamics considering both the introduction of advanced technological processes and sales volumes. Having started its operation as a small Spanish plant in 1965, PORTINOX has become one of the key members of THIELMANN CONTAINER SYSTEMS, the Business Unit Containers of the Teka Group. Eventually, it has become the world leader in production of beverage kegs. Millions of kegs being used all over the world are the best proof for the highest level of the designing and producing processes and, inevitably, of the absolute keg reliability.
Guillermo Rueda, Corporate Commercial & Marketing Director of the company joined us to answer current questions on THIELMANN PORTINOX
What is the position of your company in the world keg producers' ranking?
Due to our production capacity and the strategic location of our production plants, at present we are the biggest producer in the world, with a real production capacity of over 2.5 millions kegs per year.
What plants produce kegs which are then supplied to Russia?
We are delivering from the biggest keg manufacturing plant in the world, which is located in Granada, Spain.
Being a major keg producer you probably have detailed data concerning the damage sources which mostly affect kegs. Do you manage to minimize them by design solutions?
n THIELMANN PORTINOX we put a lot of effort in designing our products for minimizing future damages. The dimple design promotes resistance to impact and compression, and even if the chime is bent, the keg is still valid.
Which technologies are used at your production sites? How important are such processes as pressing, welding and grinding for the product performance and drink quality?
1. Standard Deep Drawn with quick presses to improve stainless steel main features against hits, extending therefore the life of the keg.
2. Two-step deep drawn to be able to produce tall containers with small diameters.
3. Last generation TIG and MIG/MAG welding, always with internal gas protection in order to achieve the best internal keg quality.
4. Final chemical processes guarantee that the beverages won’t change taste even from first filling of the keg.
5. Different laser etching possibilities such as customer branding and logos, matrix and barcodes,…
6. Paint customization of the keg.
7. RFID tags for tracking purposes.
8. Leak detection by Helium test specifically designed and exclusive from us. No other competitor can detect such small leaks.
9. We don’t grind the keg, we immerse the keg in a pickling bath which cleans the keg completely both internally and externally.
Your production is known for control over keg quality. Please, tell us what parameters are controlled, and what they mean for the keg reliability?
Leak detection with Helium provides us with an extremely high reliability. Leakage that we are able to detect and reject wouldn’t even be noticed by our customers as they are very small and would be covered by beer or CO2 molecules. We are seeking new applications for artificial vision cameras which allow us to revise welding in real time.
How much do your technology and the quality control of kegs prolong their in-service life as compared to the average one of other kegs which can be bought on Russian market?
We are strongly committed to improve every day our own internal processes, so we prefer not to talk about others. Our challenge: Permanent research.
Pitfalls what should you keep in mind when buying used imported kegs
- Resistance of the domes
- External image of your product
- Shorter life cycle, what means less value for money.
- Possible branding from different competitors, what means not suitable image in the market.
- Straightness of the neck