Economy
16/08/2007
State Demonopolisation Committee carries out beer market analysis
Following its action plan for the third quarter of the year, State Demonopolisation Committee of Uzbekistan has carried out the analysis of the market for production and sales of beer in Uzbekistan, UzReport.com reported.
The aim of the research was to look into the competitive environment and the adequacy of pricing policies, and identify the prospects for the market.
The committee’s press service said the research covered large beer producers of Uzbekistan – Uzbek-American Inter-Rohat JV (brand: Kibray, Tashkent region), Mehnat-Pivo (Patriot; Tashkent region), Uzbek-Czech Samarkand-Praga-Pivo JV (Pulsar; Samarkand), Raupxon (Yunusabad; Tashkent city), Almalykpivo (Tashkent region), Uzbek-German Ziyobakhsh Uni Trading JV (Asia; Bukhara city), and mini-breweries Besh-Yogoch Pivo LLC, Gambrinus LLC, Kamolot Mega JV, Tohiriy, and workshops within the Navoi Mining and Smelting Plant (Zarafshan and Uchkuduk).
The projected and installed capacity of five (out of six) large companies together made up 875,900 hectoliters of beer yearly (1hL=100 liters). The level of the used capacity makes up 497,200 hL or 54% of the installed production volume (production capacity not being used fully). The installed capacity of six mini-breweries made up 5,000 hL of beer yearly. The aggregate capacity is being used at less than 40%.
The level of prices for the same units of product (0.5L, 1L) are approximately the same for large producers. The sales price for a half a liter of beer (bottled) ranges from 300-600 soums, and for a liter – from 800 to 1,300 soums. At the same time, lower prices (as indicated by calculations) illustrate higher use of production capacity and relatively bigger volumes of production (sale). In the case of Samarkand-Praga-Pivo JV, the official distributor of Pulsar LLC, the price discount reaches 47%.
The same situation is true for "small" producers: the prices for 0.5L (bottled) makes up about 600-900 soums, and for 1L – reaches 1,500 soums.
A large beer factory of the Baltic Beverages Holding (a consortium of European beer companies) and Sarbast Plus (Uzbekistan) has been launched. The factory has a major competitive advantage reflected in the vast projected (installed) capacity, which makes up 1 million hL yearly. However, the market situation indicates that in the conditions of tough competition that currently characterizes the market the new player will have to put strong efforts to benefit from its competitive advantage.
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