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4/2005 Ðûíîê ïèâà Ìîëäîâû. Byelorussian beer market. Kazakhstan beer market - Kazakhstan beer market

(abridgement)

Contents

Market development
Regional features
Market segmentation at the price
Market segmentation on packing
Beer Import to Kazakhstan
Raw materials base
Our forecast
Main manufacturers

Today Kazakhstan beer market can be named the most dynamical on the Postsoviet area. The last five years the consumption of beer in this republic grows with high rates, the foreign investors come, there is manufacture modernization. In our survey we shall examine the Kazakhstan brewing branch development, estimate the prospects and will try to give the forecast of its development.

Market development

First of all, analyzing the reasons of high growth rates, we shall note, that in 1996 in average only 6 liters of beer annually needed on one inhabitant of Kazakhstan. The brewing branch crisis during the economic reforms, connected with practically fivefold falling of the consumption level was one of the deepest among the former union republics…

The second wave of recession in the branch was connected to the aggravation of an economic situation. The crisis continued during 1992 — 1996 when the manufacture was reduced on average up to 27% annually, and in 1996 6,3 million dal of beer was produced…

Chart. Beer production in the Republic of Kazakhstan for 1995-2004, thousands dal

A turning point for the Kazakh economy as a whole is 1995-1997. Mainly, the economic rise of the country was connected to the escalating volumes of petroleum export which development program now provides stable growth rates of gross national product at the level of 10-11% and a low rate of inflation to the republic.

For all markets the tendency when the beer branch overtakes the average indicator of the manufacture growth is usual. At the same time for Kazakhstan...

Nevertheless, the growth of well-being level of the Kazakhstan population and as the consequence the growing consumption of beer gave a push for engaging internal and external investments in beer branch which, since 1996, develops extensively and fast enough…

Chart. Dynamics of the beer consumption in Russia, Ukraine and Kazakhstan 1991-2003, liters per capita

At this stage practically all beer in Kazakhstan was made without the transnational groups’ participation. The first large foreign company, which began to make beer in Kazakhstan, was Efes Beverage Group which in 1997 revived the Karaganda brewery, having formed on its basis its own enterprise — the JSC «Efes Karaganda brewery»…

Another problem for the breweries located in boundary regions with Russia, became the fast growing import, the first wave was provoked by the financial crisis in Russia in 1998…

In Kazakhstan in 1999 beer was legislatively introduced in general group of alcoholic beverages. At the same time, at the excise rates establishment on vodka the government started with an item, that at the price rise the level of tax deductions is reduced at the expense of transition of vodka business in «shadow». In the result…

At the same time the law accepted in 2003 «On advertising», came in force from the beginning of 2004, and completely forbade the alcohol advertising (and beer also), including radio, television, printed mass media and the outdoor advertising in Kazakhstan…

In the beginning of 2004 the similar to Kazakhstan restrictions on the beer advertising have not been entered yet in Russia which is in the uniform information space with Kazakhstan, therefore…

More than 80 breweries of the various power act in Kazakhstan today. The leading Kazakhstan beer is the international groups:

Efes Beverage Group includes the enterprises JSC «Efes Karaganda» in Karaganda and Almaty (the main brands are «Karaganda», «Staryj Melnik» and «Efes Pilsener»);

Baltic Beverages Holding includes «Ak-Nar» Ltd in Almaty, a member of the BBH group at the end of 2003...

Map. Main enterprises of the brewing industry in Kazakhstan.

Chart. Shares of the companies by beer production in Republic Kazakhstan in 2003, %

During several last years there were appreciable changes in the brands sales structure (see. A market segmentation at price). New marks have actively entered on the market: the licensed «Amstel» and «Botchkarev» (Heineken), «130» (JSC «PPZ»).

Chart. Dynamics of the market shares of Kazakhstan companies by sales volumes for 2004, in natural means, % (under the data of «PPZ»)

Chart. Dynamics of the market of Kazakhstan companies by sales volumes for 2004, in money means,% (under the data of «PPZ»)

Regional features

By the beginning of 2002 the population of Kazakhstan was 14820, 9 thousand people (16536, 5 thousand — in 1989). bout 56% of the population of the republic lives in the cities. From the investor’s point of view, Kazakhstan is the centre of Central Asia and a «rallying-point» in this region, an original bridge between the north and the south. The republic has got an extended border with Russia — the basic importer of beer and «locks» by its territory the basic countries — exporters — Kirghizia, Turkmenistan, Uzbekistan and Tadjikistan. In the East Kazakhstan borders with China, the country which is the most perspective and capacious beer outlet today.

The climatic conditions of Kazakhstan — a sharp continental climate, as well as traditions of beer consumption, cause the expressed seasonal prevalence of sales. Relations of realized beer volumes of 2003 in Russia, Ukraine and Kazakhstan are June / January...

Chart. Beer production volumes in Republic Kazakhstan per months 2002-2004, in thousands dal (calculated on the bases of the official statistics of assignments to budget)

The irregularity of the brewing manufactures disposition in Kazakhstan is connected to the population density in those or other regions and the availability of water, fit for brewage. The leading regions on beer manufacture in Kazakhstan are Almaty, Southern-Kazakhstan, Karaganda, Akmolintsk…

Chart. Consumer potential of Kazakhstan regions

Market segmentation at the price

The general consumer ability growth of the population in the last years stimulates the transferring process to more expensive and quality production. There is a reduction of the economy-segment (up to 60 tenges) and the mainstream (60-80 tenges) and local-premium (from 80 tenges) segments development in which the majority of beer marks are positioned which manufactures introduce to the market today, in aspiration to increase the share in the market.

The share of the economy-segment decreases (37% in 2001, 33% in 2002 and 26% in 2004) though in the absolute relation of sale do not fall. The most sold brands in this segment are: «Schymkentskoje» (JSC «Schymkentpivo»)…

The mainstream — segment is stable enough and makes…

Local-premium segment develops dynamically — its share…

The super premium segment (from 115 tenges) presented only with imported beer...

Chart. Market shares of the main beer brands of Republic Kazakhstan (under the data of the ACNielsen )

Market segmentation on packing

The basic part of the packed Kazakhstan beer is filled in a glass bottle which share in the market is 94,9%.

In contrast to other countries of CIS, the filling and sale of packed beer in plastic bottles…

The package and packing materials are partially made in Kazakhstan...

Beer Import to Kazakhstan

The main growth of import deliveries volumes fell to 2002 that was connected with the export programs development by the Russian companies…

Chart. Dynamics of the beer import for 2002-2004 (under the data of «BUK»)

Chart. Beer import volumes by months in Republic Kazakhstan for 2002-2004, in thousands dal (calculated on the bases of the official statistics of assignments to budget)

Chart. Import share in total volume of the beer sold in Republic Kazakhstan by months for 2002-2004, % (calculated on the bases of the official statistics of assignments to budget)

If these accounts follow from the official statistics, the breweries marketing services researches show, that the real total amount of import exceeds…

Raw materials base

With the growth of beer production in Kazakhstan the consumption of raw material for brewage has considerably grown…

In the Almaty area, in Tekeli the malt-house works, with the potential productivity of 80 thousand tons annually…

On the question about the development of own raw materials base for brewage the executive director of the BUK Zoja Ryabova answered : «In Kazakhstan the brewing barley storage zones are considered as a zone of risky agriculture because of...

Our forecast

The Kazakhstan market of beer on 80% is controlled by six leading companies and tends to the further consolidation (in 2001 this share was 60%). In spite of...

The beer advertising restrictions introduction in Russia and the excises increase should have a positive effect for the sales level of the national manufacturers (though, according to their words they do not feel such effect yet)...

Concerning the new industrial enterprises construction the situation remains uncertain enough…

It is necessary to note a positive, from the consumer culture point of view, tendency of the Kazakhstan market which note the majority of the manufacturers that is the…

Taking into account the stable economic conditions, the beer market of Kazakhstan will keep high parameters of production and consumption volume growth. In an intermediate term prospect it is possible to assume…

Main manufacturers

Brewers Union of Kazakhstan

The Brewers Union of Kazakhstan is a public noncommercial organization which was found by the large and average enterprises on beer production. By the Union scope of activity practically all questions of brewing enterprises work are touched, including questions of the legislation, customs — tariff policy, financial and economic activity, introduction of high technologies and the world standards, the assistance to the economic, trade and scientific and technical cooperation with the foreign countries, the perfection of the branch experts professional level. The Union activity is managed by the coordination council which members are the management of the largest manufacturers of the republic. The council chairman is Yerbul Yetekbaj (the director of the JSC «Rosa»). The Executive director of the Brewers Union of Kazakhstan is Zoja Ryabova.

Efes in Kazakhstan

The enterprises of the JSC «Efes Karaganda» in Karaganda and the Almaty area are the part of the Turkish group Efes Beverages Group.

In 1997 the company bought the «Karaganda brewery «Kolos», on which basis the JSC «Efes Karaganda Brewery» was created. For the period from 1998 to 2002 the company made the scale reconstruction of the enterprise. The German line on beer filling with the power…

BBH in Kazakhstan

The structure of Baltic Beverages Holding since 2003 includes the public corporation «Ak-Nar». The enterprise based in 1999, belonged to the «Reconstruction and Development European bank», and the group of private investors on behalf of the public corporation «Kablan». The bargain cost which alternative was the construction of a new brewery was about $30 million. In the autumn...

Heineken in Kazakhstan

In 1998 the Heineken NV company became the co-owner of the «Dinal» Ltd. In 2002 the company redeemed a part of shares at the Kazakhstan co-owners, having increased the share up to 51%. And in June, 2004 Heineken increased the sharing in the «Dinal» Ltd up to 97%. The rest 3% of shares of the «Dinal» Ltd belong to the local shareholders and in the long term can pass to the company. This bargain was financed from the Heineken NV internal resources. The company invests the funds in the...

«Perviy Pivovareniy Zavod» JSC

The JSC «Perviy Pivovareniy Zavod» is the new name of the «Almaty brewery No1», — the oldest brewing branch enterprise of Kazakhstan. At present the enterprise power is about 5 million dal annually, at the potential power of 7 million dal.

Since 1992 the investments in the production…

«Schymkentpivo» JSC

The JSC «Schymkentpivo» is the largest enterprise of the brewing branch and the largest exporter of the republic, producing near 23% of all Kazakhstan beer. The brewery produced the first lot of beer in 1976. On the JSC «Schymkentpivo» together with Belgian company MEURA the plan of the production modernization without its shut-down was developed…

«Rosa» JSC

The JSC «Rosa» is the successor of the Pavlodar brewery — the largest manufacturer of alcohol-free beer production in the western region of Kazakhstan. At present, due to the conducted modernization of the enterprise, the potential beer production volume increased up to 3,62 million dal annually. The reconstruction on the JSC «Rosa» began in…

«Vostok — beer» Ltd

In summer 2001 a new brewery of the «Vostok beer» Ltd was put into operation near Semipalatinsk. «Vostok beer» Ltd is the subsidiary production unit of the «Semej — Su» Ltd formed in 2000. Having started its activity from the production of alcoholic and soft drinks, «Semej — Su» Ltd realizes the scale project on the brewing productions development. The brewery building design was developed by Kiev institute «Ukrgipropischprom» under the scientific management of the «Dzherela» company…

«Atameken and Co» Ltd

The brewery «Atameken and Co» Ltd operates in the Aktyubinsk area since 2002. At factory the traditional German beer technologies are used. The equipment facilities of the high degree automation was delivered and installed by the German firm «Beraplan». The potential of the enterprise development allows it to expand the capacities twice. The main brand of the «Atameken and Co» Ltd is the…

«Araj» JSC

The JSC «Araj» is a versatile enterprise of the Kostanajsk area, which industrial activity is concentrated on the carbonated and alcoholic drinks and beer production. The brewery is equipped with the equipment with the high degree automation of the engineering procedures. The potential power of the brewery is…

«Ust-Kamengorodsky brewery» JSC

The JSC «Ust-Kamengorodskyj brewery» is the large manufacturer of the East Kazakhstan area, and this area is the basic one for the enterprise sales. For the last years the equipment reconstruction in a mash tun, directed on a volumetric gain of the manufacture production was conducted…

«Arasan» Ltd

«Arasan» Ltd is a versatile organization which includes two breweries: the parent enterprise in Kostanaj and the chapter in Rudnuj.


Unabridged version volume is 23 p., 14 pic. and charts.

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