Beer in Ukraine

PRE-COVID-19 PERFORMANCE

Beer culture on the rise, driven by dark and craft variants

Beer had seen some modest growth in the 2018 to 2019 period, thanks to the stable political outlook in Ukraine, with no extra excise tax added and intensive promotions from players in the segment. Lager remained the largest sub-category in 2019, although dark beer was seen to show strong growth as it became more popular with consumers.

Premiumisation trend driving value growth, with even economy players making an appearance in the premium segment

Total value growth was also previously seen in beer in the 2018 to 2019 period, which was driven by the premiumisation trend noted in 2019. In addition to intensive promotions from players in the high-end segment, premium beer also started to become more affordable, creating a smaller price gap between premium and mainstream beers.

AB inBev Efes Group takes over from Carlsberg Ukraine after strong competition between the two leading players

AB InBev Efes Group led beer in 2019, taking over from Carlsberg Ukraine PAT. There has been intense competition between the two leading players since AB InBev Efes Group merged with Anadolu Efes in 2018 and re-entered the segment with an updated brand portfolio, including previously popular Efes brands such as Belyi Medved, Staryi Melnik, Miller, and Velcopopovicky Kozel.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of beer are expected to fall by 30% in 2020 in light of the impact of COVID-19. This compares to an expected 1% rise forecast for 2020 during research conducted in May 2019, i.

Affected products within beer

Small Ukrainian beer breweries suffered a major hit from COVID-19, as reported by the owners of the breweries. Around 130 small breweries in Ukraine reported 90% falls in their sales, as a result of fewer occasions for consumption, as well as downtrading and a shift of preference to more popular brands of large producers.

Recovery and opportunities

Should domestic beer producers have been able to remain in business, there is great still scope for developments within craft variants. This trend is unlikely to cease, despite the fact that the premiumisation trend has been affected and many consumers are looking towards more economical, or at least mid-price, beer products.

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