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. ...
Small Scale Breweries in Russia: projects 2002-2011
Economical "portrait" of a minibrewery
Projects of equipment importers 2002-2011
M.B.S. Mini Brewery System
MBA 21 Trading
Other manufacturers of minibreweries
Approximately half of minibreweries, which started operating at the beginning of the century, are still working, though many of them have changed their names and owners. At those times small scale producers as a rule occupied vacant regional niches as the market was not yet saturated. In distant regions even today there are some small scale enterprises, which practically did not develop their production, outputting modest volumes of beer and getting small revenues.
A significant part of acting businesses which started with low-capacities production equipment, are now rated as medium or soon will be. Here are some examples:
1) “Dzerzhinskaya prodovolstvennaya kompania” (Dzerzhinsk food company) purchased in 2002 a minibrewery by hardly known in our country German firm for $.... This was the base for “Dzerzhinskiy BC”, which constantly expanding has grown to be a large beer producer; 2) in 2003 “Agrofirma “FAT” became the owner of a minibrewery from company Agrometal for $...; 3) the same year, “Bochkaryovskiy pivovarenniy zavod” also purchased a minibrewery from company Agrometal for $ …. Today it is a large regional business which in 2009-2010 bought modern equipment for a sum almost totaling $... mln.
Perhaps the stories of most of currently operating medium size breweries can serve as an example, because only a small number of entrepreneurs invested several million dollars at a time into a large production, without knowing the specificity of business.
But let’s return to chronology of small scale brewing development. The dynamics of technological equipment purchases by various enterprises fully reflects the development of minibrewing.
Among projects of 2002-2004 which have to do with today functioning enterprises, there are several the most prominent ones. It is significant that all of them belong to the Volga region of Russia. In 2005 the Siberia accounted for the main volume of import equipment deliveries.
Year 2004 was the most depressive judging by volumes of the delivered equipment. Though during that year, there was capacity extension of companies which grew from small into medium brewing enterprises. But these supplies cannot be ranked as “minibreweries”.
In the middle of noughties, significant changes took place, resulting in faster dynamics of small scale brewing development.
Firstly, key producers of minibreweries entered Russian market. Till that time most of consumers did not mark out any supplier. But later the market started to be dominated by companies which are very famous today. In particular, 2005 was a breakthrough for company Zip Technologies, which began implementing one of the largest Russian projects. That was also the year for sustainable development start of companies Salm and Mavim. Though since that time the positions of the leading producers have been fluctuating.
Secondly, we have to mention an unprecedented project, that is the creation of “Tinkoff” restaurant breweries network — the most active realization stage of which took place from 2002 till 2008 and which had a big impact on development of all brewing in Russia. This may be a coincidence, there might be simply favorable conditions, but in our view, it was the success of “Tinkoff” which formed steady growth wave of restaurant breweries number.
If one assesses the minibreweries market by the sales volume, it seems that in 2006 it did not develop — by value it amounted to the sum of $... mln. Actually the number of sold breweries soared up, but year 2006 saw a start of cheap equipment expansion. At that time company Techimpex entered the market and sold … inexpensive minibreweries under brand Blonderbeer. In eastern regions of Russia the sales of key Chinese producers such as Harbin Hande Light as well as a row of other Asian companies, sky rocketed.
In 2007 the equipment market for small-scale producers started growing significantly by value of sold equipment. But judging by the dynamics of equipment sales year 2008 turned out to be one of the most successful for developing small brewing in Russia. Investors and entrepreneurs believed in this exciting and profitable business and rapid economy growth during pre-crisis period allowed to find funds. In monetary terms the market of minibrewery equipment almost tripled, and the number of supplied units of equipment increased doubly comparing with 2007.
The economic recession of 2009 seriously affected the market of small brewery equipment. The fall of import supplies amounted to …% by value and to …% in units of equipment. But after overcoming the most difficult recession consequences, investing into small brewing resumed dynamic growth.
2010 turned out to be the most successful for producers of import equipment. Their sales grew by …% — to $... mln. which significantly exceeded the volume of sold equipment for medium scale breweries and approached the equipment sales for large producers. The number of shipped minibreweries more than … to … units. There were enough orders to load all key minibreweries producers.
In January-August 2011 there was a slight decline of equipment sales comparing to the correspondent period of 2010, it fell by …%. But taking into account the rapid development of 2010/2009, such a small decline can be considered a good result and mean that steadily high interest of entrepreneurs and investors to small scale brewing. All the more so, in view of the fact that the sales in units actually grew … units as compared to … units in 2010. This multidirectional dynamics can be easily explained. Year 2011 saw a jump of inexpensive breweries sales.
We can observe two stages in the dynamics of technological equipment purchases, divided by a crucial for the beer market year 2007 which turned out to be the last year of fast growth. Till 2007 we could see «armament drive» of leaders — major federal beer producers.
A jump of equipment shipments then took place against the background of rapid market development. We can explain this by the fact that till that time during many years the federal companies which most actively developed their capacities in the regions were the most successful ones. After 2007 there was a dramatic change both in volumes and in structure of brewing equipment shipment. Small and medium scale beer producers start to be the leading ones.
Large scale producers
The market consolidation started in mid 90ies and progressed intensively till 2007. The leading five were actively investing funds into production development during this period. In 2007 the equipment import volumes more than doubled and reached a historical maximum.
After 2007 large shipments of brewing equipment were connected to realization of four companies’ projects:
1 In 2008 SABMiller company actively invested into building of Ulyanovsk subsidiary. Import equipment was also directed there.
2 The same year saw completion of Heineken modernization and capacities augment at their breweries. However, as time showed the company took too long for completion of this process.
3 Import equipment which was purchased by Efes company in 2009-2010 was almost totally intended for the company malthouse.
4 In 2010-2011 practically all volume of brewing equipment import was directed to «Moskovskaya Pivovarennaya Kompania». These costs were mainly connected to production capacities expansion.
Medium scale producers
In 2007 the share of independent enterprises with Russian capital attained minimum at the level of …% *. If we were to estimate the depression and rise of medium enterprises judging by the volumes of technological equipment purchases, then we would have to note that the process of capacities renewal was practically suspended in 2005. Then medium scale breweries were rather striving to survive than developing as bankruptcy or merger was hovering over them. It seemed that all beer market would soon belong to the five leading transnational companies. But popularity of draught unpasteurized beer, beer patriotism growth and specialized retail development after 2007 gave second wind to survived medium breweries**.
* Business Analytica, packed beer market
** We do not rank companies "Ochakovo" and "Moscovskayа Pivovarennaya Kompania" among medium scale producers
The positive dynamics was not stopped even by the economic recession. Revenue growth allowed owners of medium enterprises to start investing into production development and product quality. New fans, draught market development and example of successful «regionals» stimulated investment into production of those medium breweries, which had not done it before.
By the end of 2011 shipments of import equipment to regional breweries can reach $... mln. Only from January to September 2011 large shipments were made to … medium scale breweries. For example under our estimate, «Zhigulyovskoye pivo» (Samara) purchased equipment for $... mln., Agrofirm «FAT» spent … mln., «Dzerzhinskiy BC» and «BC Trekhsosenskiy» — $... mln. And the equipment was purchased mainly from leading world producers, in particular from company GEA , KHS and Holvrieka. Volumes of «medium» brewery shipments in monetary terms are already comparable to equipment import of market leaders, which sharply reduced purchases as early as in 2008.
In their turn the volumes of purchase investments by small scale brewers were not only comparable to medium businesses but exceeded them in 2010.
Thanks to Rosstat data which started singling out miniproducers, we can rather accurately describe the performance of minibreweries in terms of finances and production. Though using the official statistics, we can analyze the work of only small companies, for which industrial production is the main activity. In this process we are not able to analyze restaurant breweries as well as large or multiprofile businesses for example retail or distribution companies which have decided to produce beer of their own. Besides, the article does not take into account the data on many major minibreweries for the most part in Moscow and Saint Petersburg which are not ranked as small scale producers by Rosstat (for example “Vasileostrovskaya pivovarnya”).
In this case, how much do Rosstat figures differ from the overall number of acting minibreweries? If we judge by the number of foreign supplies of brewing equipment, then it will be approximately twice. By that, the structure of supplies, as it is, reflects this tendency — more then half of minibreweries is being delivered to companies, producing beer not as the main business activity.
Thus, the output volume of specialized small beer producers in 2010 totalled …*... l. Their share in Russian beer production volume in 2010 amounted to only …%. If we look at comparable periods 2011 and 2010 (January-October), we will see a reduction of beer production volumes by …% and the market share rose to …%.
* When assessing the total output volumes, we adjusted Rosstat data on Novosisbirsk region for December 2010 because of inadequate figure differences.
On the basis of the available data we can approximately assess the total output volumes of small scale brewers. If we assume that both the average nonspecialized company and specialized one produce equal volumes of beer, then the total beer production by industrial minibreweries will total about …... l. Besides, under our estimate, today there are about … operating restaurant breweries in Russia. Though there are beer restaurants with industrial output volumes (normally located in big leisure centers in big cities), the annual output volume of a restaurant brewery amounts to about... l. Correspondently Russian restaurants brew some … mln.... l. more per year.
Thus, the total output amount of small scale producers can be estimated at …... l. At that, the share of small scale producers in Russian market amounts to about …%. Though the real output volumes and market share can quite possibly be higher than the above cited calculations.
Further, following Rosstat classification, we divide businesses into two categories — “small” and “micro”. A firm with a staff of up to 15 people and annual profit of up to 60 mln. rubles is considered a microenterprises. Organizations of up to 100 people and revenues of up to 400 mln. rubles * are ranked as small enterprise.
* In Rosstat classification microenterprises are a part of small enterprises group, though in the article they are divided for the easier analyzes.
Absolute majority of small enterprises differ from microenterprises not because their revenue exceeds 60 mln. rubles but because their staff is more than 15 employees.
In 2010 the number of small enterprises reduced by …, to … businesses. And the number of microenterprises grew by …, to …. Average revenue of microenterprises in Russia amounted to … mln. rubles, calculated volume of beer output was …... l. Average revenues of a brewery ranked as microenterprise in 2010 totalled to 5.85 mln. rubles, and calculated beer output volume amounted to... l.
As we have mentioned above, the official statistics of Moscow of Saint Petersburg hardly reflect the activity of local microbreweries. Though these two cities are certainly centers of “alternative” beer production, we have to focus on other regions, where Rosstat data are more representative.
Here we should point out one interesting rule. In spite of the distribution network of international companies covering all country territory, small scale brewing is best developed in the regions which do not have large-scale production or there are few of them.
An unchallengeable leader of regional of small scale brewing is Krasnodar Territory. According of Rosstat there are … small and … microbreweries (under our estimation about … overall), which in aggregate output …... l. of beer in 2010. In the current season, basing on output dynamics for 8 months, one can expect production growth by approx. …%.
But again, if one relies on the official data on beer realization beer in the Krasnodar Territory (…... l. in 2010) and considers, that beer volume realized by small producers equals their sales volume in regions, then their share on the domestic market amounts to …%, which is rather unusual for other Russia regions.
A lot of factors stimulate the development of small scale brewing business in the region. In the first place, there are few production sites of large brewing companies. In the second place people, who come for vacation to the Black Sea coast, are willing to taste something new and to pay premium for microbreweries products. In the third place, development of small scale brewing is boosted by the largest in Russia branch exhibition on brewing in Sochi, which is attended by microbreweries producers as well as many potential clients. Of course there are a lot of domestic producers among them.
The Altai Territory stands out among regions with developed small scale brewing. Under our estimation, about … small producers including agricultural producers and private entrepreneurs there output beer. But if we rely on the official data, in the Altai Territory there … small and … microenterprises with “exclusive” activity that output …... l. of beer in 2010. This volume amounted to about …% of the regional market.
Small scale brewers were also successful in developing of big cities in eastern regions of the country. For example, high income level of population and large beer fanbase created favorable conditions for small scale brewing in the Krasnoyarsk Territory and Sverdlovsk region. A significant number of minibreweries have been functioning since the beginning of the century but in the recent years a lot of new businesses sprang up.
Northern regions of Russia notable for small population size and high income level are also being developed, for example Tyumen region and Khanty-Mansi Autonomous Area. By the way, exactly Tyumen region and Khanty-Mansi AA as well as Yamal-Nenets AA are on the lead in terms of calculated volume of revenues of one small scale enterprise which was …-… mln. rubles.
We have to note, that a large number of regions, where market share of small scale enterprises is large in distant parts of the country. If we base on the above described assessment method, it will turn out that in North Osetia domestic producer, outputting …... l., controls half of the market. The same share belongs to two domestic minibreweries in the Dagestan Republic that is …%. In the Adygea Republic two small enterprises account for …% of the market. The output volumes of the local enterprises are not big, but the South Caucasus does not demand much beer. Similar example can be observed in the opposite country part — Sakhalin region. Per capita beer consumption here is low, that is why … small breweries, producing only …... l. of beer, control …% of the market.
Zip Technologies is the sales leader by value. Under our estimate, over the period of 2002-2011 the company imported equipment for the sum of $... mln. to Russia. Thus, … equipment units, minibreweries and restaurant breweries of various capacity.
Zip Technologies entered Russian market in 2000. The first projects following the development tendencies of small scale brewing were connected mainly to regional industrial enterprises. From 2000 to 2002 breweries in Arkhangelsk, Saransk and Murmansk regions were set into operation. However, at that time the market was dominated by other producers, so the share of Zip Technologies in the total sales volume was comparatively small. The company first made itself known in the middle of noughties.
One of the largest delivery on the minibrewery market in 2004-2005 which put Zip Technologies among sales leaders, was connected to the company’s Siberian project. In 2004 construction began and in 2005 a minibrewery “Pivovarennaya Kompania Sibir” with a capacity of …... l. per year was opened in Ulan-Ude. The cost of import equipment amounted to $.... The company keeps on operating, being according to its management the leader in draught segment of the region, but it also produces beer in PET and glass bottle.
One more brewery costing $... with a capacity... l. per brew in 2004 was sent to Nizhniy Novgorod, where restaurant brewery ABS with two halls for 155 seats was opened.
In 2006 company Zip Technologies realized two restaurant projects in the Volga region. Firm “Knaip”, situated in Naberezhniye Chelni, purchased a brewery with a capacity of... l. per brew for $... for beer restaurant Besser. The premises design of this restaurant has one peculiarity — not only the cooking process but all the production is open to the guests’ view.
The other brewery for ... was consigned to Izhevsk entrepreneur expecting the opening of beer pub “Medvezhya berloga”.
In 2007 Zip Technologies was again in the lead in sales. The company managed to beat other suppliers thanks to an order to the sum of $... for restaurant “Shalyapin” in Omsk, which got equipment with a capacity of... l. per brew. However that big establishment did not make it through 2009 and was closed.
One more brewery costing $... was sent to Saint Petersburg, where new restaurant “Nabeerezhnaya” seating 300 people was opened. The brewery has a capacity of... l. per brew too.
Finally we should notice a shipment for Moscow network “Samokhval” which though did not buy equipment, but expanded its capacity due to … CCTs with volume... l. and a total cost of $....
In 2008 Zip Technologies showed a twofold sales growth, i.e. to $... mln. Four projects were connected with opening of restaurant breweries with a capacity of... l. per brew. Let’s have a look at three of them, which were realized directly by the company.
The biggest shipment for the sum of $... was purchased for “Astrakhanskaya set plavuchikh restoranov”. In order to supply several river trams with beer, the company bought a brewery. It was installed in stationary restaurant “Poplavok” on the landing stage of a rented berth.
A brewery of the same capacity was bought by Smolensk company “Shia”. The equipment to the sum of $... was installed in restaurant Hagen, quite a big establishment in German style.
The third brewery was sent to Surgut, where it was integrated in the operating entertainment complex “Vavilon”. Recreation and entertainment leisure was supplemented by a beer restaurant.
Three restaurant projects were implemented using equipment of lesser capacity. A brewery costing $... was shipped to Omsk for restaurant brewery “U Pushkina”. Local businessman Oleg Lobov opened his establishment for 350 seats in the building of a library.
The other two breweries costing less than $... were shipped to Yarkutsk (brewery integration into leisure center “Drakon”) and to Krasnodar (restaurant “Sancho-Panso” for 100 seats).
In 2009 the company realized two big projects in NorthWest region. Two floors of a shopping center in Kaliningrad houses Russian restaurant “Khmel”. Zip Technologies installed there rather powerful equipment costing $.... The brewery includes a cooker with a capacity of... l.
The second project to the sum of $... was realized for well known in Saint Petersburg brewery “Pivovarnya Myunkhel”. The new industrial minibrewery with a cooker capacity... l. was four times as powerful as the equipment installed there previously, and allowed producing... l. of beer monthly. The brewery working there at that moment supplied beer to the same-name restaurant. But now the company organized a distributional division and beer Munhell started being delivered to establishments of HoReCa and retail.
Zip Technologies company in 2010 increased sales more than twofold again up to $... mln. Such a significant growth resulted from the shipment to the sum of $... mln. which we undoubtedly call the largest among those ranked as small scale brewery production.
A brewery with a cooker capacity... l. and a full capacity of …... l. per year was shipped to Moscow region to company United brends of Beergood. The company builds up its marketing policy on opposing brands from its portfolio to the production of mass producers, being “an international distributor of private European breweries and the owner of brands”. Apparently, Moscow importer decided to add premium brands of its own to the portfolio, so built brewery “Pivovarnya Novorizhskaya” “abandoning commercial balancing between price and quality and aspiring for strict replication of cult brands of European beer”.
The other two projects, according to information from Zip Technologies site, are at the stage of installment and launching preparation. One minibrewery costing $... with a cooker for... l. was bought by Voronezh company “Torgoviy tsentr “Moskovskiy”. The other minibrewery costing $... and with a capacity of... l. per a brew was purchased by an entrepreneur from Lipetsk.
In 2011 Zip Technologies went on developing dynamically. In January-August … complete breweries were shipped to Russia and on the average equipment for the sum of $... mln. was delivered.
The biggest project was realized in Orel where Zip Technologies shipped restaurant equipment costing $... with a capacity for... l. per brew. Restaurant brewery “Grinn Beer” was opened in “Mega Grinn”, the largest entertainment trade center of the city. To measure the scale of the project, one should take into account that the establishment hall seats 570 guests.
Another brewery with a cooker of the analogical capacity but costing $... was shipped to Chelyabinsk. Ilya Roitenberg, an expert in small scale brewing and entrepreneur, started his own production — “Laboratoria zhivogo piva”. The beer is to be delivered to HoReCa establishments as well as to retail, and the price of beer bought at the production site will be comparatively low. The company is planning to organize its own outlets, and offering to restaurants use its capacities in order to brew beer under brands of their own.
The third equipment unit costing $... with a capacity of... l. per brew was purchased by company “Monplezir”. It is worth mentioning that in 2009 in Fryazino town (Moscow satellite) Zip Technologies already launched a brewery of analogical capacity for this company.
In addition, Zip Technologies supplied … more quite powerful breweries to Russia till September 2011. However we cannot be sure about their recipients.
Austrian company Salm is one of the major equipment producers and importers that can be considered a market leader too. Under our estimate, the total volume of the company’s supplies to Russia since 2002 averages to more than $... mln. About … equipment units were purchased for normally rather large scale and high cost projects. All in all since 1992 the company has imported to Russia about … equipment units.
We have to say that though the diagrams contain the companies’ supply volumes, we do not have detailed information on many large scale projects, so we examine only several of them.
In 2005 vodka producer “Veda” purchased a minibrewery costing $.... Though this equipment was never implemented because of an accident which happened to a co-owner of the holding. In 2008, the brewery was bought by company “Premium Pivovarni Peterburga”. Prior to that the business owners had to rent a part of facilities from another producer. The new project, brewery Knightberg received investment to the sum of $... mln. according the company management. Today the enterprise has potential capacity of... l. of beer per month and is one of the biggest independent beer producers in Saint Petersburg.
In 2007 restaurant brewery “Domashnyaya pivovarnya “Brudereshaft” was opened in “Megapolis” one of the biggest leisure centers of Chelyabinsk. The establishment designed in German style includes three banquet rooms for 435 seats. The total cost of equipment from stainless steel with a capacity of... l. per brew (... per year) reached $....
In 2008 company Salm became the market leader which sold equipment for the sum of $... mln. Due to its four large shipments the company left rivals far behind.
A brewery costing $... was also sent by Salm to Chelyabinsk. “Tsentr gostepreimstva Yevropa”, joining several establishments and networks with different conception, decided to supply them with beer of their own. The company purchased a brewery by Salm with a cooker for... l. and a capacity of... l. per year.
Another project costing $... mln. was realized by Salm in Perm. Restaurant “Kama” bought a brewery with a cooker for... l. and an annual capacity of... l.
Salm company was also quite successful in 2010, having sold equipment for $... mln. Three equipment units with different capacity were shipped to Russia.
A large consignment costing $... mln. was shipped to Voronezh. New retail center “Galereya Chizhova” houses among other cafes and restaurants art-show restaurant “Balagan-City” for 1500 seats which is one of the biggest restaurants in Russia. Its design reminds of the atmosphere of an ancient European city. There are 4 bars in the establishment and the beer is filled through 34 towers. There Salm installed equipment with a capacity of... l. per brew and potential productivity... l. annually. Since the beer restaurant belongs to the company group including other establishments HoReCa, and the equipment capacity is big, so one can presume that beer will be realized not only on the production site.
The second brewery of restaurant type to the sum of $... was shipped to Kaliningrad. Four-star castle hotel “Nesselbek” places a restaurant brewery, designed in Medieval style. A copper cooker for... l. with complete copper coating blends with the ancient interior of the castle. The full capacity of the brewery is... l. per year. Currently the opening preparation of a spa with beer baths is being completed here.
We should add that according to the company management this year contracts for brewery supplies to Stavropol (till the year end) and to Rostov-na-Donu have been concluded. Besides, contracts with Krasnodar and Orenburg are expected to be signed soon, and early in 2012 contracts with companies from Sochi and Moscow oblast are to be concluded.
Czech company Destila is a one of the leading minibrewery importers. Under our estimate the company bulks large among the leaders, having supplied equipment for the sum of $... mln. since 2002. The company thrice was at the top of the tree, namely, in 2002, 2006 and 2009.
In 2002 company Destila delivered a complete minibrewery with a capacity of …... l. per year for the sum of $.... The minibrewery was ordered by company “Belpivo”, a small industry brewery in Belebey city. The enterprise supplies its draught beer to network of regional restaurants “Cheshskiy dvorik” and packed beer goes to retail. In 2010 the company extended its production, having also bought … CCTs from the same producer.
The same year, equipment with a capacity of …... l. per year was supplied to restaurant network “Tinkoff” in Samara. The price of the minibrewery at that moment amounted to $... mln; total investments into the project reached $... mln. By the way, company Destila was engaged in expansion of restaurant network “Tinkoff” capacities in Novosibirsk and Tolyatti, where additional CCTs were installed.
In 2004 one more significant project was realized in Samara. A restaurant which now bears name “Cheshskiy Pivovar”, got brewing equipment to the sum of $... with a capacity of... l. of beer per year. “Cheshskiy Pivovar” belongs to restaurant holding and apparently supplies beer to other bars of the group.
In 2005 Destila sent to Krasnoyarsk an equipment unit with a capacity of …... l. per year and costing $.... The minibrewery was bought by the group which today owns beer restaurant “Munkhen”. In 2007 and 2008 there was capacity expanding and … CCTs costing $... were additionally purchased.
The same year, a brewery in Volgodonks (Rostov region) with a capacity of ... was launched. It was installed in restaurant “Cheshskiy Pivnoy Dom”, an establishment situated in a shopping and leisure and seats 150 guests.
In 2006 all the three breweries sent to Russia were meant for HoReCa establishments. One of the shipments to the sum of $... went to Tambov. There, in the city center a small restaurant “Filin” was opened. The restaurant has ancient European style and a brewery with a capacity of... l. per year. In 2010 expending took place, namely, … CCTs were additionally installed.
The second brewery, more powerful —... l. per year to the sum of $... was consigned to Chelyabinsk “Chastnaya Pivovarnya Spiridonova”. The restaurant for 400 seats is located in the city center, in the semi-basement of big shop and business center “Business-dom Spiridonov”.
The third not a very large brewery was purchased by Novorossiysk businesswoman for $..., but it was installed in the technical premises of restaurant “Staraya melnitsa”.
Company Destila in 2007 again, according to customs statistics, imported three complete breweries. One of the breweries with a capacity of... l. per year and costing $... was shipped to city Mezhdurechensk (Kemerovo oblast), but we cannot say where and how it is being used.
The second Destila’s project in Chelyabinsk was not so big — at small restaurant “Veseliy Kaban” seating 100 guests, a brewery with a capacity of... l. of beer per year costing $... started operating.
One more minibrewery with a capacity of... l. per year was mounted in village Vaskelovo. It was purchased for ... by Saint Petersburg company “Gabrinus” for beer supply to restaurant “Brovar” as well as city retail realization. A large network project “Sitik” was launched in Saint Petersburg, where Destila delivered equipment for the sum of $.... The minibrewery with a capacity of …... l. of beer per year supplies beer to five restaurants of network “Vatslav Zamok”. In 2011 the brewery capacity was increased with 8 CCTs.
Finally, according to the company data, in 2008 a brewery with a capacity of …... l. was delivered to Tyumen and one more brewery with a capacity of …... l. to Saint Petersburg. However we do not know anything about the development of these projects.
In 2009 company Destila shipped equipment for the sum of $... mln. to Russia.
The largest consignment costing $... mln. was sent to a small Ural town Nizhnyaya Tura. Company “Magistral” purchased it apparently for “Pivovarenniy zavod “Rezon”. The minibrewery was equipped with a cooker with a capacity of... l. and … CCTs for … l. The potential capacity of the equipment is …... l. of beer per year. Certainly the production of such capacity cannot be intended for a local market, as Nizhnyaya Tura numbers about 20 thousand people. The consignments are more likely to be focused at Yekaterinburg and Perm. But at present we are not informed of operation start of the new brewing equipment in that region.
An equipment unit with a capacity of... l. per year costing $... was purchased by Kaluga brewery “Bahus”. The story of this enterprise extends back over 130 years, but “Bahus” output volumes have always ranked the company among small producers. However, according to the company’s reports, the beer production has been suspended after starting kvass output.
Rather interesting and specific for the recent years projects were realized in Surgut and Naryan-Mar. In distant and wealthy “mineral” regions brewery production is far from being cheap but enjoys great popularity.
Company Destila in 2010 shipped three units of equipment with various capacities to Russia. The most prominent event was realization of the second in succession project in Tambov. However now the point is not about a small restaurant brewery, but about rather big production, which can be ranked as minibrewery only by formal characteristics. Thus, company “Tambovskiy pivovar” purchased equipment costing $... with potential capacity …... l. per year.
The enterprise is equipped with filling lines in KEGs and PET. Production of “Tambovskiy pivovar” is widely represented in special beer retail and many HoReCa establishments. In 2011 there was capacity extending of “Tambovskiy pivovar” thanks to 9 CCts.
An interesting project is being realized in village Barvikha in the Altai Territory. Local company “Zolotoy Ulei” specializes in bee-farming products. For many years the company has been producing special beer sort “Medovushka” brewed on the basis of honey. The company focuses on traditions and ecology benefits of its production. “Nothing has been heard of coloring, aromatizing and preserving agents, so we don’t know nothing” says inscription in Slavic type on the label. The Altai company has apparently decided to develop production of other fermented beverage categories and to do this it bought a minibrewery costing $... with a capacity of …... l. per year.
The third industrial brewery with a capacity of... l. of beer per year costing $... was installed in Nizhniy Novgorod and belongs to entrepreneur Boris Cherkunov. As far as we know a new CCT shipment is planned to be made to this enterprise.
From January to September 2011 company Destila delivered brewing equipment units for the sum of $... mln. The biggest project, shipment of a brewery with a capacity of ...... l. per year costing $... for “Produktservis” company in Sochi. Czech brewery named Ceska Perla bottles beer in KEGs and realizes it in retail.
Another brewery with a capacity of... l. per year costing $... works in cafe “Den surka”, which will be a part of future small entertainment center in the outskirts of Moscow. The beer is to be sold at establishment, but being also packed in PET it is intended to be sold in retail too.
The third restaurant brewery costing $... was shipped to Stariy Oskol town (Belgorod region) by Destila. Czech beer restaurant “Shpachek” has equipment with a potential capacity of... l. per year.
In 2010 company Techimpex won the first positions and in 2011 it became an unchallengeable leader among importers of small brewery equipment. Under our estimation the total sales volume of the company till September 2011 amounted to $... mln. with that … equipment units were delivered.
The popularity of Blonderbeer breweries in Russia resulted in the first place from its low price. One can buy cheaper new breweries only from Chinese producers and only under conditions of direct contract. Besides advertisement of Blonderbeer breweries obviously dominates in the Net.
2006 saw the beginning of Techimpex expansion in Russia. Then the company shipped to Russia two breweries of small capacity. The sales have been doubling since every year since 2006. Thus in 2007, four breweries were delivered including one for $... which went to Ulan-Ude, where rather big project for company “Yertuhanov” was realized. In 2008, among four shipped breweries there were three consignment to the same sum — they were delivered to company “PSZh-P” (Balgoveschensk), to enterprenuer Vladimir Laskin (Astrahan) and restaurant of firm “Karbon” (Kaliningrad).
In 2009 the company had already delivered “critical” number of breweries to Russia which made it one of the key players by the number of realized projects. Besides, equipment low price plaid the main role for many entrepreneurs during the economic recession. Though the number of projects implemented in 2009 decreased, however their scales grew significantly, owing to this Techimpex sales doubled — to $... mln.
Three large minibreweries with a capacity of …-… thousand l. costing from $... to … were delivered to Krasnoyarsk Territory. Besides, one equipment unit went to a new distribution partner, company “Londe Avenir”, which later plaid the key role in the company’s expansion of Russian market. It was impossible to identify the owners of the new equipment.
In 2010 company Techimpex led the market having sold equipmet to the sum of $... mln. including … complete minibreweries. There were one large minibrewery with a full capacity of... l. per year costing $..., five minibreweries with a potential of... l. per year for about $... and … breweries with a capacity from … to... l.
In 2010 Krasnoyarsk trading partner of Techimpex, company “Londe Avenir” accounted for …% of sales by value (or five complete equipment units of various capacity). Most likely, breweries Blonderbeer from “Londe Avenir” were sent to many eastern regions of Russia. We can in more detail examine several projects realized by Techimpex without a trading agent.
One of the minibreweries costing $... was shipped to Belgorod to Alexey Potapov, entrepreneur. He owns a network of economy pizzerias “Potapich”, where, apparently, beer of its own is intended to be supplied. The brewery is equipped with a cooker for... l. and allows producing... l. per year.
One more analogous capacity costing brewery $... was shipped to Volgograd. In spite of comparatively low equipment productivity, company “Planeta zvezd” has already produced many beer sorts including ones made by Techimpex recipes. A similar industrial project is being implemented by company “Arkanum”. It located its production with a capacity of... l. per brew (... per year) in village Topkanovo (Moscow region), planning supplying production to Moscow and the region. The cost of complete equipment reached to only $....
… breweries of different capacities were purchased by entrepreneurs from small populated areas. Equipment with a cooker for... l. costing ... was shipped to town Belidzhi (Republic Dagestan), where a minibrewery was opened. Three other minibreweries of small capacity were delivered to cities Buzuluk (Orenburg region), Yefremov (Tula region) and Novokuznetsk (Kemerovo region), where apparently, production for local markets is launched.
One should also notice a restaurant project which is rather unusual for Techimpex, which according to sales statistics mainly supplies equipment for industrial breweries. A brewery with a capacity of... l. per brew costing $... was purchased for Saint Petersburg restaurant “Birshtube”. The establishment of “home” type is located on the first floor of Marriot hotel.
In January-August 2011 company Techimpex sold as many breweries Blonderbeer as in 2010. And by value company already increased its sales by …% to … mln. and by the year end both the sum and number are likely to increase judging by the company’s orders volumes and the present sales dynamics.
We should also mention active development of brand Blonderbeer — practically all new minibreweries use matured formula and the trade mark itself when forming its product range. If Russian expansion of the company progresses at the same rates beer Blonderbeer will be available everywhere in Russia.
Interestingly, in 2011, more than …% of sales of Techimpex brewing equipment was secured by Krasnoyarsk distributing partner. Although it was not “Londe Avenir” any more, but leasing company “Liron-Company”, which had already purchased four breweries with a capacity of... l. per week, six breweries with a capacity of... l. and one more with a capacity of... l.
Apparently, the argument of “Liron-Company” is really important for first-time brewers: “In the situation when banking system is not fully developed and possibility of loan reception is limited, leasing is one of the most available effective means of business development financing”.
The advantages are obvious — in contrast to loan the buyer does not need pledge, investment in equipment purchasing is not heavily taxed, and payments can be done during a long period of time. Yet, according to market players middle men between foreign producers and clients lead to higher taxes. But this does not matter for the buyer who is interested in the final cost.
Apparently, the bulk of equipment leasing is done in east regions of Russia. However, two similar east projects, including one of its own were realized by company Techimpex without Krasnoyarsk partner. A minibrewery costing $... with a capacity of... l. per day (up to... l. per year) was shipped to city Neftekamsk (Republic Bashkortostan) and is operating there. It was bought by an entrepreneur who is mainly engaged in restaurant business. Owing to rather big city population, about 130 thousand people, and the city belonging to a comparatively prosperous region, the local market is likely to consume substantial volume of minibreweries production.
One more Techimpex project was realized in town Verkhneuralsk, Chelyabinsk region. A minibrewery with a capacity of... l. per day (potentially... l. annually) costing $... was delivered there. The equipment was bought by company “Rodniki Urala” which before the brewery acquisition was in drinking water delivery. It is intended that the company produce was sold in specialized retail in HoReCa including Magnitogorsk restaurants.
German company JBT Brautechnik is one of the biggest brewing equipment suppliers mainly for restaurant projects. Under our estimate since 2002 the company has sent to Russia 8 breweries with a net cost of $... mln. According to the company’s data, all in all JBT Brautechnik has shipped to Russia … breweries since early 90-ies.
In particular, in 2002 the owners of entertainment center “Ogni Ufi” bought industrial equipment to the sum of $.... Minibrewery Kessel Brau with a capacity of... l. per brew (up to ... per year) is equipped with … vessels for fermentation and after-fermentation and with a KEG filling line. Beside the restaurant the enterprise produce is delivered to specialized retail and to HoReCa establishments. In 2008 JBT Brautechnik cooperation with restaurants went on. That time, a restaurant brewery costing $... with a capacity of... l. per brew was purchased.
In general for JBT Brautechnik year 2008 was undoubtedly the most successful on Russian market. The company managed to realize at once 5 rather large projects to the total sum of $... mln.
The largest equipment supply — for the sum of $... was delivered to development company “Stremberg”. At the moment the company is realizing a large-scale project on construction of shopping and leisure center Piterland in Saint Petersburg. As we see, the brewery was bought before, but the project was being implemented for a longer than planned time. The declared potential productivity of the brewery reaches... l. annually with a capacity of cooker of... l. One more brewery costing $... in Saint Petersburg was purchased by a group of companies “SET” engaged in restaurant business.
In Nizhniy Novgorod brewery JBT Brautechnik was bought by “Saprex” for $.... It was mounted in restaurant “Druzhishche Myuller”, which is located in the business center of the company. This brewery is characterized by a glass cooking boiler.
Another brewery costing $... was delivered to new restaurant brewery “Augustin” in Bryansk. The boiler of the cooker is also made of glass, which is a know-how of JBT Brautechnik. The capacity of cooker is standard for projects of the company, i.e.... l. and productivity ... l/year.
Kaspar Schulz company made itself known on Russian market of minibreweries equipment from the very start of the market forming, in early 90-ies. A well known in west Europe brand guaranteed the company’s sales growth, from 1991 to 1995 it was one of the leading equipment importers, having realized … projects. Altogether since 1991 about … equipment units for the sum of about $... mln. have been imported to Russia.
It is worth mentioning, that in the new century the volumes and structure of company’s supplies changed. Kaspar Schulz in Russia gave preference to regional industrial projects with a capacity of … to ... l. of beer per year and possibility to further capacity growing.
Since 2002 in Russia … minibreweries (including one reconstruction) and … restaurant breweries were supplied to Russia. Among industrial objects there was quite a large one intended for production of ... l. of beer per year and the others had a capacity of between … and 1... l. with a possibility of further development. We do not have the data on the equipment price for most of projects, thus the diagrams have assessed cost.
In 2003 Kaspar Schulz together with company WBS Brautechnik, equipped restaurant “Tinkoff” in Ufa with a brewery with a cooker for about... l. The total sum of investments into the establishment for 250 seats averaged $... mln. Besides, in 2003 the company supplied an industrial minibrewery with a cooker for... l. to town Sizran (Samara region). To highlight the production traditions, the enterprise took the producer’s name. The brewery “Schulz” supplied beer to local restaurants and regional retail.
Beerhouse network “Tolstiy Frayer” initially got beer from company “Petrobir”. But new establishments made its owners think of having a brewery to supply them with beer. The company’s production was launched in 2006. The industrial minibrewery in town Olshaniki is equipped with a cooker having a capacity... l. In spring 2009 the second turn of production line was launched which allowed increasing the brewery capacity to ... l. of beer per year.
Two restaurant projects were implemented in 2007 in Volgograd (German restaurant Bamberg) and in Anapa (restaurant Bukbier Haus). Both establishments received breweries with a cooker for... l. from Kaspar Schulz.
In 2009 the company realized two large-scale projects. In Saint Petersburg club “Metroklub” has been for many years enjoying strong popularity of the youth. By today this three dance floors establishment with its seven bars is considered to be the biggest and most frequented dance club. Due to substantial footfall of the restaurant the establishment’s owners found it rational to install an industrial minibrewery, which would allow supplying large volumes of comparatively inexpensive beer to the clients. “Metroklub” received equipment with a cooker for... l. and a capacity of more... l. per year. Under our approximate estimate the cost of the equipment totals about $... mln.
The second major project of 2009 was realized by Kaspar Schulz in Khabarovsk. “Pivnaya Kompania” (owner is Andrey Altunin) have been for many years occupied in import beer distribution in Far East region. In particular, it is known for being the sole supplier of authentic beer Asahi to Asian territory of Russia. However, “Pivnaya Kompania” decided to enrich its portfolio with premium sorts of its own and acquired quite a powerful minibrewery for the sum of $.... The potential capacity of the brewery having a cooker for... l., reaches... l. per year. As far as we know in the nearest future its capacity is intended to increase to ... l.
It remains to say that according to the company’s Russian department management, two large contracts have been recently concluded and will be implemented in 2012 in many regions of Russia.
The Hungarian company “Agrometal” is well-known in Eastern Europe primarily as a supplier of comparatively inexpensive industrial minibreweries. The company has been working quite steadily in Russia for many years now. According to our estimation, “Agrometal” has implemented … projects since 2002 and the total sales for this period comprised $... mln.
At the beginning of our survey we have already mentioned the supply of brewing equipment for the agricultural company “FAT” and “Bochkarevskiy Pivovarenniy Zavod” in 2002-2003 which at that time were classified as small manufacturers.
Among the middle decade projects we would like to single out the supply of industrial minibrewery with the capacity of ... litres per year. It was purchased for $... by Altai company “Torservice” (“Alepivo”), situated in the city of Zarinsk. This enterprise has been supplying draft beer by retail and to HoReCa of different Siberian regions up to this day. In 2009 “Alepivo” was supplied with additional fermentation tanks for $....
It is also worthwhile to mention the Ural project of the company which sold to “Surgutskiy Pivzavod” the equipment with the capacity of... l./day costing $... and also the license to manufacture a beer brand of their own for … mln. roubles. However, we could not find out whether the enterprise still operates.
In 2009 beer restaurant “Kropotkin” was set up in Kaliningrad shopping mall “Yevropa”. This establishment which is meant for 600 seats is one of the largest in the city. On the ground floor of the restaurant there is a brewery costing $.... The capacity of the brewery is... l. and its production capability is ... litres of beer per year.
The year 2011 was also rich in the sales increase for the company. Three sets of breweries to the amount of $... were shipped from January till September.
The largest supply for $... was shipped to the company “Bazis” located in Krasnodar where a private brewery Essen has been set up recently. The owners of the enterprise have already been familiarized with beer production as the new project was a consistent development of already existing business. Beer is sold in specialized retail trade in Krasnodar and also the company suggests HoReCa establishments to place orders for manufacturing of private brands.
Another brewery which costs $..., according to our estimate, the company shipped to beer restaurant “Sehr Gut!” in Nizhniy Novgorod which at the moment offers German import beer to its visitors. It is clear that the owners of the restaurant decided to expand the range on the account of their own sorts.
The third set of industrial equipment for $... was purchased by Novosibirsk business concern “Arta”. Its brewery is called “Kellers”, the brand promoted by the company Agrometal itself.
PSS Svidink is not only a minibreweries manufacturer but also one of the largest suppliers of food equipment. However, in Russia in the period from 2002 to 2010 the company realized only two tangible projects of industrial minibreweries, namely in Barnaul (restaurant-brewery “Regata”, 2005) and Stavropol (enterprise “Zerkalnoe”, 2008). Other supplies were to a relatively low sums. The year 2010 in return was marked by three large projects at a time.
Khabarovsk company “Marylen” has specialized for a number of years in the production of dumplings and other semi-manufactured products. It also included an enterprise “Dalpivo”, situated in Komsomolsk-on-Amur. The equipment of the brewery, which was built in the middle of the last century went out of date. Further development of brands known to consumers and brewing industry in general required an improvement of the capacity. At the end of 2010 PSS Svidink shipped to the company “Marylen” a packaged minibrewery with a potential capacity of ... litres of beer per year and a cooking for... l. The complete equipment cost $....
The second supply of equipment to the amount of $... was meant for an agro-industrial group from the city of Tuimazy (Republic Bashkortostan). This is a diversified group, among other enterprises it includes a beer and beverage plant “Raush Beer”. The company has apparently made a decision to upgrade or enlarge its capacity.
The third brewery costing $... was shipped to St. Petersburg. A two-storeyed beer restaurant Beerstein combines an open kitchen, music venue and open brewery with a capacity of ... litres per brew. Due to its prolate shape the hall on the ground floor looks quite like a city street.
In 2011 PSS Svidnik continued its expansion to the Russian market, having supplied three complete breweries for the period under review.
In particular, Dolce Vita Group purchased equipment costing $... for its highly large-scale Moscow project. The third restaurant Maximilian’s which has a cooker with a capacity of... l. of beer per brew was opened in New Arbat avenue. “The classic design of Bavarian restaurants was reconstructed” in the new facility as well as in the two previous ones.
A restaurant brewery with a capacity of... l. per brew costing $... was shipped to the south of the Republic Yakutia to one of the restaurants in the city of Mirny. Although the population of the city comprises just 36 thousand of citizens, the brewery of such a capacity can perfectly realize its potency of... of l. of beer per year, considering the large income of inhabitants and absence of similar supply.
The third brewery with a capacity of... l. of beer per year costing $... was purchased by a Moscow entrepreneur.
Mavim is an Austrian trade and design company which has launched a range of quite large minibreweries in Russia. Until recently the company has been collaborating with different suppliers which manufactured the equipment under Mavim brand. For instance, so far as we know, some sets were manufactured by the companies which are discussed in our survey as separate market players. However, lately, according to the authorities of Russian branch, the contracts of Mavim have been placed with one manufacturer, namely Mueller Lichtenvoorde.
From the above reasoning it is clear that we can not indicate the exact volume of the company’s sales in Russia. However, keeping in mind the cost of several projects, the price for restaurant breweries Mavim equipped with a brewing tank for ... litres exceeds, as a rule, $... mln. At that, as explained by the management, the company has implemented … projects in Russia since 2009, including the costruction of two industrial minibreweries in Narofominsk (Moscow Region, ... litres per brewage) and in a village Kukuy (Leningrad Region, … litres). But the majority of supplies within recent years has been directed to restaurants.
In particular, there is a restaurant “Puberty” in St. Petersburg which is equipped with Mavim cooker having capacity of … l per brewage. The establishment is performed in hi-tech style and is capable of receiving 250 visitors. Another project in the city on the Neva with a brewery of similar capacity is a free floor restaurant “Shchelkunchik”. This inexpensive establishment combines fast food service and a design typical for more expensive restaurants. The cost of the mounted equipment, according to our estimate, comprises $....
To the best of our knowledge, an industrial-type brewery with the capacity of ... litres a year costing $... was mounted in a restaurant-brewery “Metropol”. As explained by the restaurant owners, the equipment was tested in Belgium and is suitable for manufacturing Belgian beer sorts.
Three supplies for the restaurants joint by one name played a major role in the development of Mavim company on Russian market. In particular, in 2008 the first German brewery Maximilian Brauhaus (“Art-Management” company) capable of receiving … guests was set up in a shopping and recreation center of St. Petersburg. Next year a Bavarian restaurant Maximilian’s was set up in Naberezhnye Chelny, but that time it was one of the three projects of Dolce Vita Group company which began to develop a chain of similar restaurants. The company’s second restaurant with the Bavarian concept was set up in Kazan in 2011. Its brewery, costing $..., is unusual because there are four copper containers in the hall, namely a cooker and a bottling tanks instead of the traditional pair of vessels. The third equipment supply for Moscow restaurant Maximilian’s this time was assured by the company PSS Svidnik (see above).
It should be noted that the company Mavim, as explained by its management, in the nearest future will make a statement by a variety of implemented projects. In particular, a powerful minibrewery with a cooker of... l. was shipped to the company Svam, a large distributor of FMCG products. It is obvious that this partner of many Russian and foreign brewing companies decided to add premium brands in the portfolio.
Besides, it is planned to sign contracts with the clients from Nizhniy Novgorod, Moscow and St. Petersburg.
Czech company M.B.S. Mini Brewery System which did not show any considerable activity on Russian market earlier, implemented at once four large projects in 2010.
The company demonstrated the most large-scale startup in Perm. The group of enterprises “Dobrynya” which specializes in retail and wholesale of food products, alcohol beverages and beer decided to acquire its own manufacturing. The total quantity of productive investment to the enterprise Cesky pivovar comprised $... mln. The equipment at the price of $... was bought for a minibrewery with the capacity of ... l. per year and the volume of brewing tank of... l. According to the company’s management, the product will be mainly sold not to distributive networks but to pubs and restaurants. It is planned that ultimately the product of the new enterprise will appear in 70% of corresponding establishments of the city. Besides, it is quite possible that in future there will be a chain of branded Cesky pivovar bars in Perm.
Complete equipment for $... with a cooker having the capacity of... l. was set up in Moscow at the new private brewery “Velka Morava”. The manufacturers of “Moravskiy Class” beer, as it appears from the brewery and the beer names, emphasize the Czech authenticity of their product which is proved by the Czech stock and the Czech equipment. It is necessary to mention that the brewing production appeared on the basis of Czech malt and hop sales. Thus, a brewery is, in terms of marketology, a “reason to believe” for the purchasers of stock. Beer is sold in HoReCa establishments and specialized retail trade.
A restaurant brewery with a... l. cooker costing $... was bought by a Kaliningrad Company “PVO”. The equipment was probably reserved for “Pivovar” restaurant which, like the mentioned above company, offers to its clients beer made of Moravia malt and Zatecky hop. Although, considering that the restaurant with a brewery had been set up before the equipment was mounted, the company might upgrade the manufacturing or implement a new project.
Finally, the fourth set of equipment for $... was shipped to Rostov. Here, a German beer restaurant “Frau Marta”, capable of receiving 200 visitors, was set up in a twostorey mansion. The peculiarity of this restaurant is such a design of the brewery that it is possible to see the copper cooker with the capacity of ... litres not only inside the premise but also from the outside.
In 2010 a design company MBA 21 Trading which sold equipment for $... mln. approached Russian market.
The largest supply costing $... was connected with the construction of minibrewery with the capacity of... l. per year for the company “Ganzeyskiy Soyuz” in St. Petersburg. This name, connected with the union of German medieval merchant guilds entirely determines the style and positioning of the chain which includes four beer restaurants Hansebier. Along with the proper establishments the product is also directed to the city retail trade.
A minibrewery with the capacity of... l. beer per year for $... was bought by Irkutsk distribution and product company “Admiral Kolchak”. A new enterprise was set up in a small town of Nizhneudinsk with a population of 40 thousand citizens, where one of the company’s sales branches was situated previously. Since 2010 along with federal brands and beer of its own Irkutsk enterprise “Admiral Kolchak” has been supplying the product of local bottling to the retail trade of Nizhneudinsk.
The final recipients of two other minibreweries which were shipped to Krasnoyarsk and Moscow remain uncertain. It should be noted that, according to the management of MBA 21 Trading, in 2012 yet another growth of deliveries is expected, it is planned to ship … minibreweries costing … mln. Euro to Russia.
Czech company B-Kontakt has got quite ahead on the Russian market over the recent years. The main bulk of supplies falls on small capacity restaurant breweries. According to our estimation, … sets of B-Kontakt equipment have been shipped to Russia since 2002 and the total sales volume comprised $... mln.
In 2002-2003 the company B-Kontakt supplied equipment costing $... to Samara Region. Here a restaurant with a brewery took up its residence in the magnificent building of the community center of company “Tolyattyazot”.
The next Russian supply took place in 2006, when the company shipped a brewery for $... to Czech restaurant “Zolotaya Praga” in the centre of Volgograd.
After some time, in 2009 two sets of restaurant equipment were straightway shipped to Rostov Region. One brewery with the design capacity of... l. per year costing $... was mounted in the hotel and recreation complex “Zamok” (Shakhty). The second brewery with the capacity of ... litres of beer per year costing $... was shipped to a Czech-style beer restaurant “Staroe Mesto” in Rostov.
In 2010 the company implemented … projects. The largest supply costing $... was meant for a beer establishment Baden-Baden, which is the property of “Grotesk” company from Petrozavodsk. Two breweries manufactured by B-Kontakt for about $... and having the capacity of ... litres per year were shipped to Murmansk (“Monblan”) and Saratov Region (“Brilliant 2002”).
From January till September 2011 the company was able to ship two breweries to the Republic of Bashkortostan. One of them costing $... was purchased by a company from Sterlitamak where a new Czech restaurant has been set up recently. The second restaurant project in Ufa is unusual not least because it is not designed in Czech-style. The brewery was mounted in a Scottish restaurant Mc highlander which belongs to “Barinoff” company.
Although only several companies dominate on the market of brewing equipment, the equipment of about … foreign manufacturers has been shipped to Russia since 2002. The majority of them provided only one supply but some manufacturers implemented several significant projects and are well-known on the Russian market.
Thus, in 2006 “Harbin Hande Light” company shipped straightway five sets of equipment to Russia at the total cost of $.... Three types of minibreweries were represented among them: the large one, having the capacity of... l. per brew for $... which was shipped to Vladivostok, two medium ones having the capacity of... l. for $... shipped to Ulan-Ude and Rostov and also two breweries with the capacity of... l. for Birobidzhan and Blagoveshchensk. As it is obvious, the total sales volume fell within the territories situated near China. The year 2008 was also successful for “Harbin Hande Light”, when the company shipped to Russia the equipment for $.... The company performance is scrutinized in detail in “Journal.Beer” magazine №4-2009.
Among other Chinese inexpensive equipment suppliers who have been showing significant activity lately, it is necessary to single out such companies as “Zhongde Equipment” and “Jinan Liangyoubier”, they have already shipped to Russia quite a large number of minibreweries and restaurant breweries.
One of the most expensive projects in the history of small brewing was implemented by a German company MBT Mini Brau Technik. The total cost of the equipment which was supplied in 2010-2011 for a Krasnoyarsk company “Proizvodstvo #1” (or ”Kholdingovaya Kompaniya Sibir”) comprised $... mln. Prospective capacity of the industrial brewery, according to the manufacturer, comprises ... l. of beer per year. Cooker capacity is ... litres and the volume of … CCV is... l. each.
We should also mention such European suppliers as BrauKonzept, Brauhaus Technik and WBS Brautechnik, which have implemented a lot of interesting projects in Russia over the last years.
The materials of the article are prepared basing on the import supplies statistics using information system “Mozaika” (www.infomozaika.ru). A row of assessments are based on the data concerning the realized projects directly from producers of import equipment or on information published by equipment buyers. Besides, Rosstat data are also used in the article.
In separate cases the estimated cost of equipment can considerably differ from the actual one, if the supply was made by different importers or at different time. The data on the cost, structure, and volume of import supplies as well as on their interpretation should be considered not as the contract price but as our expert assessment.
We do not guarantee the cited information to be completely precise, though it is based on the data obtained from reliable sources. One should not be solely reliant on the article contents instead of conducting analysis of one’s own.
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