Russia: malt production and market
For the first time in many years malt production is falling in Russia. The resource base has been dynamically developing since the middle of the 90-ies. But the malt deficit was satisfies only by the end of 2007, when malt production grew by 26%. This year can also be considered the most successful one both for breweries and malt producers by volume market growth volume. May 2008 was the turning point, as it became obvious that the current resource supply is more than enough to satisfy the demand. There began the first decline in malt production.
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Ukraine beer market 2008
Within the past five years Ukraine beer market has been exhibiting quite a robust development dynamics. Its annual growth rate left behind not only the saturated market of developed countries but also exceeded the largest in the Eastern region Russian market. However in 2008 the dynamics which had been considered predictable changed.
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The favorite brands of young Russians
In spring 2009 company Profi Online Research found out about the favorite brands of young Russians among those presented on the beer market. In the research the emphasis was made on the consumption assessment, loyalty, and brand awareness. The article includes previously published results of the research and some details of young audience preferences. Victoria Sokolova, research director of Profi Online Research speakes in more details about young Russians preferences in the context of beer market price segmentation and main factor effecting the brand choice.
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Lean production
Costs cut programs have become more actual in the times of economic instability. While in the past high profitability of breweries was driven by fast market growth, now good financial performance can be achieved only with expenditure reduction. However the brewers say that the projects on operational costs optimization has been launched long ago and various market development schemes are taken into account in companies’ plans.
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Production and market of beer in Russia 2008
The situation in the industry and beer market has been unstable for three years already. After a dynamic growth in 2006-2007 years, the year 2008 brought about stagnation for beer consumption and production in Russia. The previous year was a succession of problems. In particular the leap of producers’ sales prices (who had several objective reasons), poor weather and the economic crisis stood in the way of gradual leveling of market development rates.
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Kyrgyzstan: perspectives of the branch and market
Beer production and market in Kyrgyzstan Republic is forming and has a big development potential. This is confirmed by comparatively low consumption per capita and substantial share of inexpensive beer in the overall sales volumes. Currently Kyrgyzstan market is dominated by Russian and Kazakh companies, and in the past year import supply growth amounted to 26% in money terms. However the local brewers manage to modernize production, develop profitable market segments and prepare for expansion into the perspective regions of the country.
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Moscow Brewing Company: plant for distributor
Detroit Investment fund has always been successful, both at beer market operation and in investment projects realization. “PIT”, “Syabar” and “Vladpivo” all these companies were quite fortunate and were bought by world’s beer giants on the tide of market share growth. The new DI project is targeted at balancing import business, particularly in the conditions of economic crisis and ruble devaluation. “Moscow Brewing Company is a strategic project and built the plant not to sell later” - says Yevgeniy Kashper, co-owner of DI. He is sure that the Russian consumer can change her attitude to mass-market products, willing to pay a fair price for them, not including the promotion costs. Nowadays beer brands must be promoted not by advertising but by a balanced trade system and value for money products.
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Ukrainian premium
Roman Stepanovskiy, brand manager of “Obolon” entertains a possibility of changes in Ukrainian market price segmentation. The crisis will make the price factor more important, which can lead to growing of mainstream segment at the account of premium segment. However moving of expensive brands to a cheaper segment is unlikely. “Obolon” carries on developing the existing premium brands i.e. youth’s beer “hike” and business beer Magnat, but at the same time it has launched its anicrisis brand Zibert.
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