Alcoholic Drinks in Ukraine
Euromonitor International's Alcoholic Drinks in Ukraine market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 152 | Publication date: Sep 2007
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- Get insight into trends in market performance
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Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Developing drinking culture moves purchases more upmarket
In 2006, consumer expenditure on alcoholic drinks saw a further increase in Ukraine. The main factors behind the growth were rising disposable consumer incomes and the developing drinking culture. People are opting for more diverse alcoholic drink varieties. It is not just the traditional beer, wine, brandy or vodka that are seeing further sales increases, but also more expensive imported offerings. Such “luxurious and exotic” alcoholic drinks as whisk(e)y, cognac, tequila and liqueurs made more frequent appearances in Ukrainian households, with this trend the strongest in the big cities.
Beer recorded unexpected growth
In spite of its seemingly established nature, beer proved to be particularly dynamic in 2006, with the strongest sales growth. The drink remains a favourite among Ukrainians. It appeals due to its taste, quality and constant innovations from leading manufacturers. Beer’s success is attributed not only to its low alcohol content, which makes it a suitable drink for hot weather, but also to its image of naturalness. The failure of its main competitor, RTDs, with its image of having artificial ingredients playing a significant role in this, proves this point. Riding on the wave of consumer income growth, premium beer varieties are also becoming very popular among consumers.
Rising demand for premium spirits
In line with higher volume consumption rates, value sales of spirits also advanced dynamically. Premiumisation started to characterise a number of product areas in spirits, with the trend particularly characteristic of vodka and brandy. With the drinking culture developing, industry experts observed consumers opting for high-quality drinks. Cheap spirits generally scare off customers, who associate low price with counterfeit alcoholic drinks. As a result, the share of illegal spirits keeps on declining, both in locally-produced spirits and imported alcoholic drinks.
Local companies control alcoholic drinks
At the end of the review period the assortment of alcoholic drinks available in Ukraine embraced a range of locally-produced and imported varieties. Domestic drinks determine sales overall, and the share of imported drinks is not significant in the product areas that have a long-standing presence in the country. Generally, these are locally-produced beer, wine, RTDs, brandy and vodka. However, domestic production often has foreign involvement, which is especially true of beer, where such giants as InBev and BBH determine the product area’s sales. Foreign investment has proved to be a good means for local companies to gain leading positions in alcoholic drinks overall.
Forecast period to see continued growth as per capita consumption is still low
Forecast sales of beer will be strongly concomitant with the economic development of Ukraine. As long as consumer incomes reach appropriate levels customers will eagerly follow Western European lifestyles, spending more on previously unnecessary drinks. Drinking culture will result in people buying a wider range of drinks, rather than opting for the most familiar varieties such as beer, wine and vodka. Current low per capita consumption of alcoholic drinks will be a strong factor, meaning that established product areas will also keep on growing under this scenario. Improving living standards will result in the expansion of the distribution of premium imported drinks, which will be not only be distributed in big cities but will also penetrate into smaller cities and towns nationwide.
Table of contents
ALCOHOLIC DRINKS IN UKRAINE : MARKET INSIGHT
EXECUTIVE SUMMARY
Developing drinking culture moves purchases more upmarket
Beer recorded unexpected growth
Rising demand for premium spirits
Local companies control alcoholic drinks
Forecast period to see continued growth as per capita consumption is still low
ALCOHOLIC DRINKS – KEY TRENDS AND DEVELOPMENTS
Economic growth in 2006 provides strong foundation for rising demand
Value sales growth beating volume sales increases – prices climbing
Market legalisation characterises Ukrainian alcoholic drinks
On-trade sales further boosted by rapid growth of on-trade channel
Wine culture to emerge, despite shortcomings of domestic produce
Specialist Retailers
Market Merger and Acquisition Activity
Summary 1 Speculated Merger and Acquisition Activity 2006-2007
MARKET DATA
Table 1 Sales of Alcoholic Drinks by Sector: Total Volume 2001-2006
Table 2 Sales of Alcoholic Drinks by Sector: Total Value 2001-2006
Table 3 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2001-2006
Table 4 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2001-2006
Table 5 Company Shares of Alcoholic Drinks by Global Brand Owner 2003-2005
Table 6 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: Volume 2006
Table 7 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: Value 2006
Table 8 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: % Volume 2006
Table 9 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: % Value 2006
Table 10 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2006
Table 11 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2006
Table 12 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2006-2011
Table 13 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2006-2011
Table 14 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2006-2011
Table 15 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2006-2011
MARKET INDICATORS
Table 16 Retail Consumer Expenditure on Alcoholic Drinks 2001-2006
APPENDIX
Legislation
Taxation and Duty Levies
Table 17 Taxation and Duty Levies on Alcoholic Drinks 2005
Table 18 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2005
Table 19 Selling Margin of a Typical Beer Brand 2006
Table 20 Selling Margin of a Typical Wine Brand 2006
Table 21 Selling Margin of a Typical Spirits Brand 2006
Operating Environment
Price Band Methodology
Summary 2 Lager by Price Band 2005
Published Data Comparisons
DEFINITIONS
LOCAL COMPANY PROFILES - UKRAINE
KHORTYTSYA LGZ - ALCOHOLIC DRINKS - UKRAINE
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Khortytsya LGZ: Key Facts
Summary 4 Khortytsya LGZ: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 5 Khortytsya LGZ: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 6 Khortytsya LGZ: Competitive Position 2005
NEMIROFF UVK - ALCOHOLIC DRINKS - UKRAINE
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Nemiroff UVK: Key Facts
Summary 8 Nemiroff UVK: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 9 Nemiroff UVK: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 10 Nemiroff UVK: Competitive Position 2005
OBOLON ZAT - ALCOHOLIC DRINKS - UKRAINE
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Obolon ZAT: Key Facts
Summary 12 Obolon ZAT: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 13 Obolon ZAT: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 14 Obolon ZAT: Competitive Position 2005
OLIMP CORP - ALCOHOLIC DRINKS - UKRAINE
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Olimp Corp: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 16 Olimp Corp: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 17 Olimp Corp: Competitive Position 2005
SARMAT ZAT - ALCOHOLIC DRINKS - UKRAINE
STRATEGIC DIRECTION
KEY FACTS
Summary 18 Sarmat Group: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 19 Sarmat Group: Competitive Position 2005
SOYUZ-VICTAN TOV - ALCOHOLIC DRINKS - UKRAINE
STRATEGIC DIRECTION
KEY FACTS
Summary 20 Soyuz-Victan TOV: Key Facts
Summary 21 Soyuz-Victan TOV: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 22 Soyuz-Victan TOV: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 23 Soyuz-Victan TOV: Competitive Position 2005
BEER IN UKRAINE
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 22 Sales of Beer by Subsector: Total Volume 2001-2006
Table 23 Sales of Beer by Subsector: Total Value 2001-2006
Table 24 Sales of Beer by Subsector: % Total Volume Growth 2001-2006
Table 25 Sales of Beer by Subsector: % Total Value Growth 2001-2006
Table 26 On-trade vs Off-trade Sales of Beer: Volume 2001-2006
Table 27 On-trade vs Off-trade Sales of Beer: Value 2001-2006
Table 28 On-trade vs Off-trade Sales of Beer: % Volume Growth 2001-2006
Table 29 On-trade vs Off-trade Sales of Beer: % Value Growth 2001-2006
Table 30 Beer: Production, Imports and Exports: Total Volume 2001-2005
Table 31 Beer Exports by Country of Destination: Total Volume 2001-2005
Table 32 Beer Exports by Country of Destination: Total Value 2001-2005
Table 33 Beer Imports by Country of Origin: Total Volume 2001-2005
Table 34 Beer Imports by Country of Origin: Total Value 2001-2005
Table 35 Company Shares of Beer by National Brand Owner 2001-2005
Table 36 Company Shares of Beer by Global Brand Owner 2001-2005
Table 37 Brand Shares of Beer 2002-2005
Table 38 Forecast Sales of Beer by Subsector: Total Volume 2006-2011
Table 39 Forecast Sales of Beer by Subsector: Total Value 2006-2011
Table 40 Forecast Sales of Beer by Subsector: % Total Volume Growth 2006-2011
Table 41 Forecast Sales of Beer by Subsector: % Total Value Growth 2006-2011
CIDER/PERRY IN UKRAINE
HEADLINES
RTDS/HIGH-STRENGTH PREMIXES IN UKRAINE
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Sales of RTDs/High-Strength Premixes by Subsector: Total Volume 2001-2006
Table 43 Sales of RTDs/High-Strength Premixes by Subsector: Total Value 2001-2006
Table 44 Sales of RTDs/High-Strength Premixes by Subsector: % Total Volume Growth 2001-2006
Table 45 Sales of RTDs/High-Strength Premixes by Subsector: % Total Value Growth 2001-2006
Table 46 On-trade vs Off-trade Sales of RTDs/High-Strength Premixes: Volume 2001-2006
Table 47 On-trade vs Off-trade Sales of RTDs/High-Strength Premixes: Value 2001-2006
Table 48 On-trade vs Off-trade Sales of RTDs/High-Strength Premixes: % Volume Growth 2001-2006
Table 49 On-trade vs Off-trade Sales of RTDs/High-Strength Premixes: % Value Growth 2001-2006
Table 50 RTDs/High-Strength Premixes Production, Imports and Exports: Total Volume 2001-2005
Table 51 Company Shares of RTDs/High-Strength Premixes by National Brand Owner 2001-2005
Table 52 Company Shares of RTDs/High-Strength Premixes by Global Brand Owner 2001-2005
Table 53 Brand Shares of RTDs/High-Strength Premixes 2002-2005
Table 54 Forecast Sales of RTDs/High-Strength Premixes by Subsector: Total Volume 2006-2011
Table 55 Forecast Sales of RTDs/High-Strength Premixes by Subsector: Total Value 2006-2011
Table 56 Forecast Sales of RTDs/High-Strength Premixes by Subsector: % Total Volume Growth 2006-2011
Table 57 Forecast Sales of RTDs/High-Strength Premixes by Subsector: % Total Value Growth 2006-2011
WINE IN UKRAINE
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 58 Sales of Wine by Subsector: Total Volume 2001-2006
Table 59 Sales of Wine by Subsector: Total Value 2001-2006
Table 60 Sales of Wine by Subsector: % Total Volume Growth 2001-2006
Table 61 Sales of Wine by Subsector: % Total Value Growth 2001-2006
Table 62 On-trade vs Off-trade Sales of Wine: Volume 2001-2006
Table 63 On-trade vs Off-trade Sales of Wine: Value 2001-2006
Table 64 On-trade vs Off-trade Sales of Wine: % Volume Growth 2001-2006
Table 65 On-trade vs Off-trade Sales of Wine: % Value Growth 2001-2006
Table 66 Volume Sales of Still Red Wine by Price Segment 2004-2006
Table 67 Volume Sales of Still White Wine by Price Segment 2004-2006
Table 68 Volume Sales of Still Rosé Wine by Price Segment 2004-2006
Table 69 Volume Sales of Other Sparkling Wine by Price Segment 2004-2006
Table 70 Sales of Still Red Wine by Grape/Varietal Type 2004-2006
Table 71 Sales of Still White Wine by Grape/Varietal Type 2004-2006
Table 72 Sales of Still Rosé Wine by Grape/Varietal Type 2004-2006
Table 73 Sales of Still Red Wine by Quality Classification 2001-2006
Table 74 Sales of Still White Wine by Quality Classification 2001-2006
Table 75 Sales of Still Rosé Wine by Quality Classification 2001-2006
Table 76 Sales of Non-grape Wine by Type: Total Volume 2001-2006
Table 77 Sales of Non-grape Wine by Type: Total Value 2001-2006
Table 78 Sales of Non-grape Wine by Type: % Total Volume Growth 2001-2006
Table 79 Sales of Non-grape Wine by Type: % Total Value Growth 2001-2006
Table 80 Wine Production, Imports and Exports: Total Volume 2001-2005
Table 81 Wine Exports by Country of Destination: Total Volume 2001-2005
Table 82 Wine Exports by Country of Destination: Total Value 2001-2005
Table 83 Wine Imports by Country of Origin: Total Volume 2001-2005
Table 84 Wine Imports by Country of Origin: Total Value 2001-2005
Table 85 Company Shares of Still Light Grape Wine by National Brand Owner 2002-2005
Table 86 Company Shares of Still Light Grape Wine by Global Brand Owner 2002-2005
Table 87 Brand Shares of Still Light Grape Wine 2002-2005
Table 88 Company Shares of Champagne by National Brand Owner 2003-2005
Table 89 Company Shares of Champagne by Global Brand Owner 2003-2005
Table 90 Brand Shares of Champagne 2003-2005
Table 91 Company Shares of Other Sparkling Wine by National Brand Owner 2002-2005
Table 92 Company Shares of Other Sparkling Wine by Global Brand Owner 2002-2005
Table 93 Brand Shares of Other Sparkling Wine 2002-2005
Table 94 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2003-2005
Table 95 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2003-2005
Table 96 Brand Shares of Fortified Wine and Vermouth 2003-2005
Table 97 Company Shares of Non-grape Wine by National Brand Owner 2003-2005
Table 98 Company Shares of Non-grape Wine by Global Brand Owner 2003-2005
Table 99 Brand Shares of Non-grape Wine 2003-2005
Table 100 Forecast Sales of Wine by Subsector: Total Volume 2006-2011
Table 101 Forecast Sales of Wine by Subsector: Total Value 2006-2011
Table 102 Forecast Sales of Wine by Subsector: % Total Volume Growth 2006-2011
Table 103 Forecast Sales of Wine by Subsector: % Total Value Growth 2006-2011
SPIRITS IN UKRAINE
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 104 Sales of Spirits by Subsector: Total Volume 2001-2006
Table 105 Sales of Spirits by Subsector: Total Value 2001-2006
Table 106 Sales of Spirits by Subsector: % Total Volume Growth 2001-2006
Table 107 Sales of Spirits by Subsector: % Total Value Growth 2001-2006
Table 108 On-trade vs Off-trade Sales of Spirits: Volume 2001-2006
Table 109 On-trade vs Off-trade Sales of Spirits: Value 2001-2006
Table 110 On-trade vs Off-trade Sales of Spirits: % Volume Growth 2001-2006
Table 111 On-trade vs Off-trade Sales of Spirits: % Value Growth 2001-2006
Table 112 Sales of Blended Scotch Whisky by Premium/Super-premium Split 2004-2006
Table 113 Sales of Gin by Premium/Super-premium Split 2004-2006
Table 114 Sales of Vodka by Premium/Super-premium Split 2004-2006
Table 115 Sales of Vodka by Flavoured vs Non-flavoured 2004-2006
Table 116 Spirits Production, Imports and Exports: Total Volume 2001-2005
Table 117 Whisk(e)y Production, Imports and Exports: Total Volume 2001-2005
Table 118 Brandy & Cognac Production, Imports and Exports: Total Volume 2001-2005
Table 119 Vodka Production, Imports and Exports: Total Volume 2001-2005
Table 120 Gin Production, Imports and Exports: Total Volume 2001-2005
Table 121 Rum Production, Imports and Exports: Total Volume 2001-2005
Table 122 Liqueurs Production, Imports and Exports: Total Volume 2001-2005
Table 123 Company Shares of Spirits by National Brand Owner 2001-2005
Table 124 Company Shares of Spirits by Global Brand Owner 2001-2005
Table 125 Brand Shares of Spirits 2002-2005
Table 126 Forecast Sales of Spirits by Subsector: Total Volume 2006-2011
Table 127 Forecast Sales of Spirits by Subsector: Total Value 2006-2011
Table 128 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2006-2011
Table 129 Forecast Sales of Spirits by Subsector: % Total Value Growth 2006-2011