Russia. Tinkov goes down from Olympus
A businessman Oleg Tinkov created one of the
most successful Russian brand in the expensive segment of the beer market
will try to earn on cheaper beer and start to produce a new sort "T".
Brewers doubt in success of this undertaking as the company Tinkoff
will compete with very strong brands in a new market.
The brewing company "Tinkoff" includes
a network of restaurants of the same name and a brewery in Sent-Petersburg
with the capacity of 2,5 million decalitres per year. Last year the
company produced 1,7 million decalitres of beer "Tinkoff",
the total turnover amounted to $53 million. According to "Business
Analytika" in September - October, 2004 the beer market share of
"Òinkoff" made about 0,9% in value terms.
The new beer "T" would enter the market
in spring, Oleg Tinkov told. A sales manager of the company "Tinkoff"
Michail Adamov specified that a retail price of the new beer would make
presumably 19-20 roubles for a half-liter bottle. Tinkov expects that
"T" will compete with Miller, Tuborg and Holsten at a 20%
In 2005 the businessman plans to produce about
3 million decalitres of the beer "T" and as much "Tinkoff".
This year the brewery is going to invest in promotion of its brands
no more than $10 million, but the main part of this money will be spent
on launch of "T", Tinkov says. Thus it is sure in the company
that launch of the new brand will not worsen positions of the trade
mark "Tinkoff". The beer "Ò" will be used by students
and when they grow up and start to work, will change to "Tinkoff,"
the businessman hopes.
In April Tinkov expects to start a new plant
in Pushkin with the capacity of 20 million decalitres of beer per year
on which it is planned to begin production of "T". He hopes
to produce license beer or orders from the foreign brewing companies
on the rest of capacities.
A marketing manager of the Sent-Petersburg brewery
"Vena" (Òuborg, "Nevskoe") Dmitry Shirshov doubts
whether this year "Tinkoff" can sell more than 1 million decalitres
of the beer "T". As he said a "local premium" segment
was too close and last year it had grown only on 8% while all market
had grown on 11%.
Shirshov estimates minimal investments into launch
of the new trade mark in $10 million. "This money will be wasted,
I would advise to invest it in more successful brand "Tinkoff,"
the expert in marketing considers. "The market capacity will not
allow to sell so much "T", there are more strong brands in
the market, and it will be difficult to press them," a general
director of the distribution company "Linkor" Andrey Galanin
An analyst of the United Financial Group Alexey
Krivoshapko on the contrary is sure in realness of plans of "Tinkoff".
By estimations of UFG last year the "local premium" segment
grew on 18%, and in 2005 expected growth is 8% up to 210 million decalitres.
According UFG this year growth of all beer market will amount to 4%.
Russia. Results of activity
of JSC "Tomskoe pivo" in 2004
2004 is called by JSC "Tomskoe
pivo" as the most successful year for all 120-years history of
the enterprise. Production volume made 8 million decalitres of beer
that is almost in 3 times more than a last year parameter and amounts
to 1% of the Russian beer market.
Growth rate of sales of "Tomskoe pivo"
exceeded growth rate of the Russian beer market almost in 16 times,
and "Tomskoe pivo" is the absolute leader in the branch by
There are a lot of reasons of such progressing
growth, these are a modernisation of the enterprise, and as consequence
achievement of a high level of quality of production, and effective
work of a sales structure in all covered regions, and a successful marketing
Plans for 2005 includes a construction of an
additional dispensing shop, increase of warehousing areas, putting a
new waterwork into operation. It will allow the enterprise to increase
the maximal level of production up to 1 million 200 thousand decalitres
of beer per month and sales up to 10 million decalitres of beer per
The press-service of the Union of Russian
Ukraine. Some results of Baltic
Beverages Holding in Ukraine
The best parameters of beer production
in Ukraine in 2004 are shown by SUN Interbrew. Baltic Beverages Holding
is on the second place. Baltic Beverages Holding invested as a whole
more than $150 million in a reconstruction of capacities of JSC "Slavutich"
Beer and Soft Drinks Plant" and "Lvov Brewery" which
are part of this company.
In 2004 sales volume of ÂÂÍ in Ukraine increased
Beer of Ukraine
Russia. Russian beer market has
grown contrary to forecasts
Contrary to all forecasts the Russian beer market grew according
to different estimations on 9-12% last year. But not all succeeded to
earn on growth of beer consumption: two largest companies "Baltika"
and SUN Interbrew skimmed the cream off the market. Analytics and participants
of the market consider that it will not be possible to repeat last year's
growth of the branch any more because the antibeer legislation puts
According to preliminary data of Rosstat published
this week last year Russian producers produced 842 million decalitres
of beer, it is 11,5% more than in 2003. The Union of the Russian Brewers
and the marketing agency "Business Analytika" cite similar
data in the joint report. According their data last year 851,96 million
decalitres of beer were made in Russia that is 12,5 % more than year
before. A little bit smaller figure 9,2% is cited by the United Financial
These parameters have surpassed expectations of brewers and branch experts:
in the beginning of the last year they supposed that the market would
grow only on 5-7% in natural terms.
Though since the end of 90th the beer market
has increased in volume, its growth rates has continuously reduced from
33% in 1999 up to 7,8% in 2003, an executive director of the Union of
Russian Brewers Vyacheslav Mamontov reminds. The last year was record
for branch by this parameter, the head of the branch union says.
By estimation of Mamontov the Russian beer market
in 2004 overcame a level of $7 billion in money terms, year before its
volume made $6-6,5 billion.
By the estimation of an analyst of "UralSib"
Marat Ibragimov in 2004 "Baltika" increased sales by 23%,
SUN Interbrew - by 22,3%. An analyst of the United Financial Group Alexey
Krivoshapko reminds that 2003 was unsuccessful for the brewing branch
because of cold spring and a failure of sales of "Baltika"
connected with reorganization of a distribution system.
A chief of a marketing department of the company
"Tomskoe pivo" Maxim Krohtin says, "The way of life changes,
and consumers in increasing frequency choose beer as alternative to
strong alcoholic drinks". "The market of cheap alcohol stagnates
during three years, and producers had an opportunity to win new consumers
with the help of aggressive advertising," a head of a department
of alcoholic production of the Omsk company "Group "Osha"
Alexander Khitrin agrees.
In fall legislators limited advertising of beer
strongly and it will necessarily adversely affect parameters of the
market this year, brewers note.
Legislative restrictions of beer advertising
put in force last fall have not strongly affected a mid-annual parameter
of production, but participants of the market sure that this legislation
will necessarily affect this year. The Union of Russian Brewers predicts
growth of the beer market of 5-7% in 2005, the same figure was given
by Tihonov from SABMiller, and Rukavishnikov from "Baltika"
forecasts 4%. Krivoshapko from UFG expects 4% this year, and Ibragimov
from "UralSib" expects 5%.
A vice-president of SUN Interbrew Irina Kibina
named data of Goskomstat for the last year as average. Under her data
in November - December beer sales did not already practically increase
in relation to the same months of 2003 because of force of antibeer
laws, and production of local producers appreciably reduced, Kibina
notes. "About half-year people will continue to buy as much beer
mechanically, but later laws will have an effect," Tihonov from
SAB Miller is sure.
Russia. Brewery "Patra"
is prepared for sale again
According to last agreements between SUN Interbrew
Ltd. and "Alpha-Eêî" the control over the Ekaterinburg brewing
company "Patra" completely passes to "Alfa-Eko".
In opinion of analysts it means that sooner or later the Ural beer will
In the first quarter of 2005 the Belgian company InBev plans to finish
buying up shares of SUN Interbrew from the Russian company Eco Holdings
Ltd. ("Alpha-Eêî") and Indian SUN Trade (International) Ltd.
As a result of these transactions InBev will accumulate 98,5% of the
authorized capital of the company and thus will close a question about
proprietors of SUN Interbrew. After their end SUN Trade and companies
affilated with it will own approximately 2% of shares of the increased
authorized capital of InBev.
Within the framework of these processes the agreement
has been reached that the share of SUN Interbrew in Joint-Stock Company
"Ekaterinburg Brewing Company" and also the share of SUN Trade
in the company "Damsel Limited" (and indirectly 23,82% of
shares of JSC "Patra" belonging to Damsel Ltd.) pass to "Alpha-Eêî".
If it is remembered that in summer "Alpha - Eêî" bought 50,56%
of shares of JSC "Patra" belonging to Joint-Stock Company
"Brewing Concern "Patra", now it has about 75% of shares.
Last October the rest 25,5% were sold by the state on public tenders
to the company Redcove Invest LTD for 116210 thousand roubles. In May
Redcove sold 17% of this share holding to the offshore company Ramantia
Investments Ltd, in a result they own 8,5% of shares of JSC "Patra".
As experts asserted earlier these companies were connected either with
portfolio investors or with the former management of the company.
In opinion of an analyst of "ATON"
Alexey Jazykova the further destiny of "Patra" will be connected
Practically all large international brewing companies
can act as potential buyers. Not so long ago the corporation SABMiller
declared intentions to make some purchases in Russia (now it owns the
Kaluga brewing company produced such trade marks as Miller, Pilsner
Urquell, Velkopopovicky Kozel, Redd"s). Last year the Dutch company
"Heineken" declared its interest to the Ural region. The Dutchs
considered an opportunity of purchase of beer actives on Ural. However
as a PR-manager of "Brewery" Heineken" Anna Meleshina
informed UralPolit.Ru, for today that question was not solved. "But
the company has not lost interest to the Ural region and all offers
are interesting for us," she noted.
In opinion of experts only SUN Interbrew can
be interested in purchase of "Patra". Now it is one of the
largest brewing companies in Russia and in Ukraine which produces such
trade marks of beer as "Stella Artois", "Bek's",
"Staropramen", "Klinskoe", "Sibirskaya Korona"
and "Tolstyak". In due time the company could not include
"Patra" in its structure however now it could buy it out.