Breweries in Belarus remain defiant over Heineken’s arrival
The Dutch company Heineken, one of the world’s leading brewers, announced late last year that it was to acquire the Belarus-based brewery Syabar from Detroit Investments Limited. Rumors circulate that Heineken also eyes Rechitsa Piva and Lidskaye Piva. Moreover, it is rumored to even grow barley for its own production. The European Radio for Belarus explores whether domestic beer makers fear new competitors.
The Minsk-based Krynitsa made it clear that they don’t fear competition.
PR manager: “We will be happy if another serious player emerges on this market. As a PR manager, I am personally convinced that they will have to try it very hard to catch up with our quality. At the same time, it will make us work even better”.
In Lida, the local brewery told the European Radio for Belarus that they were just rumors that Heineken was set to buy them. No negotiations are taking place. As for a new competitor, Lidskaye Piva does not fear this competition in spite of this world-known brand.
“Competition is always there. It makes no difference if it is going to be Heineken or Bobrov. Lidskaye is also a famous brand just like Krynitsa. One should also take into account the Belarusian mentality”, said a representative of Lidskaye Piva.
However, Marina Hulyaeva, who follows developments in the beer market for BelGazeta, calls it a speculation to refer to the Belarusian mentality in this situation. Statistics show that Belarusians buy foreign beer more and more willingly.
“I think these are typical speculations on this topic. They are not completely justified because there are absolutely clear statistics that show a steady growth of beer imports from Ukraine and Russia. There is a demand for foreign beer in Belarus. Otherwise, the figures would be adverse”.
Marina Hulyaeva also describes the arrival of Heineken as a very important event in the Belarusian market. She says the most successful companies are currently those with the foreign capital.
“The arrival of one of the top five leading transnational brands means a new stage in the development of domestic beer-brewing. I back my argument with the fact that only the companies with the foreign capital have achieved biggest successes. Last year, it was Syabar, completely owned by the US-based Detroit Brewing Company; and Alivaryia where 30 percent of shares belong to the brewing holding BBH. Only these two companies achieved real success in the brewing sector in 2007. On the contrary, Krynitsa reported some worse results”.
In the view of Marina Hulyaeva, Heineken will definitely help boost competition among domestic producers. Krynitsa has already launched a very aggressive marketing campaign. Two press conferences were held within one month to promote plans about a new brand. Hulyaeva also adds that we should expect big changes, because the giant like Heineken will hardly stop at buying Syabar only.
