Alcoholic Drinks in Uzbekistan

Report Summary

Discover the latest market trends and uncover sources of future market growth for the Alcoholic Drinks industry in Uzbekistan with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

The Alcoholic Drinks in Uzbekistan market research report includes:

• Analysis of key supply-side and demand trends
• Detailed segmentation of international and local products
• Historic volumes and values, company and brand market shares
• Five year forecasts of market trends and market growth
• Production, imports by origin, exports by destination
• Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

• What is the market size of Alcoholic Drinks in Uzbekistan?
• What are the major brands in Uzbekistan?
• Have there been any alcoholic drinks legislative changes over the past 12 months?
• How is the alcoholic drinks industry affected by the recession?
• What is consumed more; beer, wine or spirits?
• What have been the key trends seen in new product developments?
• Do alcoholic drinks consumers want value for money or added value?

Why buy this report?

• Gain competitive intelligence about market leaders
• Track key industry trends, opportunities and threats
• Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Alcoholic Drinks market research database.

EXECUTIVE SUMMARY

Domestic production reaches maturity, while imports present new products

Alcoholic drinks continued to grow at solid rates in terms of both volume and value sales. Major key categories shared in the positive development, whereas some which were historically absent hold strong potential. Domestic production determines the development of the most traditional categories within alcohol drinks, whereas newly presented categories grow due to growing sales of imports.

Consumer shift among categories continues based on various factors

Although all traditionally developed categories hold strong potential of growth and products enjoy stable consumer demand, there are several factors which cause a consumer shift from one category to another. These are, amongst others, ongoing health trends and religious impacts. Indeed, consumers are shifting to lower content alcohol beverages faster than the way around, and this shift impacted category sales in different ways.

Reforms in legislation adversely impact competition, but introduce new ways of marketing

In 2010, the Uzbek Parliament passed several legislative reforms, which worsened the competition landscape for alcohol drink producers. These reforms concerned all alcohol products regardless of alcohol content. On the other hand, such prohibitive measures forced manufacturers to be more innovative and creative in their marketing solutions. Sales of some manufacturers in 2011 already proved successful using such novelties.

Peculiarities of categories determine distribution channel performance

Although product types as well as the competitive landscape change, consumer habits with regard to purchase and consumption remain as before. One category’s products are mostly purchased through the off-trade channel, whereas products in other categories are more popular through on-trade channels. Besides, there is diversity in national consumption behaviour among restaurants, cafés, bars and night-life establishments, which variously affect sales of a particular product. Based on such peculiarities, each product type improved its sales, but through various sales channel.

Solid steady growth projected for alcoholic drinks

Despite legislative limitations placed upon the competitive environment and ongoing health or religious trends, sales are expected to grow at steady and confident rates, mainly due to very low saturation of the market and increasing number of new products and brands. Besides, the population of the country has risen over the decades, generating an even higher number of grown-up consumers. On the other hand, the government continues to support local production of particular categories of alcohol drinks, designed to produce import-substituting and export-oriented products. Overall, based on several positive factors, alcoholic drinks is predicted to generate solid and steady growth.

Table of Contents

Alcoholic Drinks in Uzbekistan - Industry Overview

EXECUTIVE SUMMARY
Domestic production reaches maturity, while imports present new products
Consumer shift among categories continues based on various factors
Reforms in legislation adversely impact competition, but introduce new ways of marketing
Peculiarities of categories determine distribution channel performance
Solid steady growth projected for alcoholic drinks

MARKET BACKGROUND
Legislation

TAXATION AND DUTY LEVIES
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2011
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Categories 2011
Table 3 Selling Margin of a Typical Beer Brand 2011 - Sarbast Original
Table 4 Selling Margin of a Typical Wine Brand 2011 – Gold Bukhara
Table 5 Selling Margin of a Typical Spirits Brand 2011 - Ekstra

OPERATING ENVIRONMENT

KEY NEW PRODUCT LAUNCHES
Summary 1 Key New Product Developments 2010-2011

MARKET INDICATORS
Table 6 Retail Consumer Expenditure on Alcoholic Drinks 2006-2011

MARKET DATA
Table 7 Sales of Alcoholic Drinks by Category: Total Volume 2006-2011
Table 8 Sales of Alcoholic Drinks by Category: Total Value 2006-2011
Table 9 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2006-2011
Table 10 Sales of Alcoholic Drinks by Category: % Total Value Growth 2006-2011
Table 11 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Volume 2011
Table 12 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Value 2011
Table 13 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Volume 2011
Table 14 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Value 2011
Table 15 Company Shares of Alcoholic Drinks by Global Brand Owner 2007-2011
Table 16 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2006-2011
Table 17 Off-trade Sales of Alcoholic Drinks by Category and Distribution Format: % Volume Analysis 2011
Table 18 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2011-2016
Table 19 Forecast Sales of Alcoholic Drinks by Category: Total Value 2011-2016
Table 20 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2011-2016
Table 21 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2011-2016

DEFINITIONS
Published data comparisons
Sources
Summary 2 Research Sources

Alcoholic Drinks in Uzbekistan - Company Profiles

Agrofirma Mehnat OAO in Alcoholic Drinks (Uzbekistan)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Agrofirma Mehnat OAO: Competitive Position 2010

Legion ShK in Alcoholic Drinks (Uzbekistan)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
Chart 1 Legion ShK: Legion in TSUM, Tashkent city
PRIVATE LABEL
COMPETITIVE POSITIONING

PTK Pulsar in Alcoholic Drinks (Uzbekistan)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 PTK Pulsar: Competitive Position 2011

Uzvinprom Holding Co in Alcoholic Drinks (Uzbekistan)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 10 Uzvinprom Holding Company: Production Statistics 2010
COMPETITIVE POSITIONING

Beer in Uzbekistan - Category Analysis

HEADLINES

TRENDS
Beer continued its healthy performance in 2011. The category enjoyed continuous marketing support and strong product developments as well as heavy investments into local manufacturing during the review period. This helped beer achieve stable growth in sales. Marketing campaigns and strong development of the foodservice channel helped it to achieve stable consumer demand. Overall, beer became more of a customary cooling beverage, changing its status from just another alcoholic drink as it was early in the review period.
Production, Imports and Exports

COMPETITIVE LANDSCAPE
In 2011, the competitive landscape did not undergo any significant changes except for switches of some imported brands to domestic. These localised brands have acquired some additional shares. Other than that, players and almost all brands retained their competitive positioning from 2010.

PROSPECTS
Beer has a positive outlook and is highly expected to continue to perform well with a stable growth rate based on several factors. First, as consumer potential in Uzbekistan continues to grow, many new consumers are expected as the younger generation increases. The beer culture will also improve with the increase of beer-houses and other similar outlets specialised for gatherings and dining out. Besides, the number of outlets broadcasting soccer tournaments, selling beer in extremely large volumes, is also increasing. Based on such positive factors, beer is predicted to generate a total volume CAGR of 3% and a 4% constant value CAGR.

CATEGORY BACKGROUND
Lager price band methodology
Summary 11 Lager by Price Band 2011

CATEGORY DATA

Table 22 Sales of Beer by Category: Total Volume 2006-2011
Table 23 Sales of Beer by Category: Total Value 2006-2011
Table 24 Sales of Beer by Category: % Total Volume Growth 2006-2011
Table 25 Sales of Beer by Category: % Total Value Growth 2006-2011
Table 26 Sales of Beer by On-trade vs Off-trade Split: Volume 2006-2011
Table 27 Sales of Beer by On-trade vs Off-trade Split: Value 2006-2011
Table 28 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 29 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 30 Beer: Production, Imports and Exports: Total Volume 2005-2010
Table 31 Company Shares of Beer by National Brand Owner 2007-2011
Table 32 Company Shares of Beer by Global Brand Owner 2007-2011
Table 33 Brand Shares of Beer 2008-2011
Table 34 Forecast Sales of Beer by Category: Total Volume 2011-2016
Table 35 Forecast Sales of Beer by Category: Total Value 2011-2016
Table 36 Forecast Sales of Beer by Category: % Total Volume Growth 2011-2016
Table 37 Forecast Sales of Beer by Category: % Total Value Growth 2011-2016

Cider/Perry in Uzbekistan - Category Analysis

TRENDS
Cider/perry is not present in Uzbekistan alcohol drinks.

RTDs/High-Strength Premixes in Uzbekistan - Category Analysis

TRENDS
Sales of RTDs/high-strength premixes are negligible in Uzbekistan alcohol drinks.

Spirits in Uzbekistan - Category Analysis

HEADLINES

TRENDS
As one of the most popular alcoholic beverages, spirits accounted for 72% share of total value sales in alcohol drinks in 2011. Although spirits particularly vodka traditionally represents one of the most popular and common alcohol drinks, it is steadily losing competition in volume terms to lower content alcohol beverages, particularly to beer and wine.

Production, Imports and Exports

COMPETITIVE LANDSCAPE
In 2011 Asfar JV led sales with 26%, followed by Farovon OOO PTK and Farvab JV each with 20% market share. Afsar continues to lead because of its mid-segment variety, as Medovaya s Limonom, Na Beryozovyh Pochkah, and Baron brands enjoy consumer loyalty. Meanwhile, Farovon OOO PTK’s stability was attributable to the performance of Ekstra and Koronnaya, which in fact continue to lose share.

PROSPECTS
Despite increasing popularity of other categories of alcoholic drinks, spirits will indeed enjoy a rather stable, albeit low, rate of growth during the forecast period. This is due to the presence of a significant proportion of consumers who are used to vodka consumption on the one hand, and increasing popularity of other kinds of spirits among the youth on the other. Moreover, religious factors are expected to influence sales to a lesser extent, meaning those who have had major concerns have already given up or switched to lower content alcohol beverages, whereas current consumers will remain loyal to strong alcohol drink consumption.

CATEGORY DATA

Table 38 Sales of Spirits by Category: Total Volume 2006-2011
Table 39 Sales of Spirits by Category: Total Value 2006-2011
Table 40 Sales of Spirits by Category: % Total Volume Growth 2006-2011
Table 41 Sales of Spirits by Category: % Total Value Growth 2006-2011
Table 42 Sales of Spirits by On-trade vs Off-trade Split: Volume 2006-2011
Table 43 Sales of Spirits by On-trade vs Off-trade Split: Value 2006-2011
Table 44 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 45 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 46 Spirits Production, Imports and Exports: Total Volume 2005-2010
Table 47 Vodka Production, Imports and Exports: Total Volume 2005-2010
Table 48 Company Shares of Spirits by National Brand Owner 2007-2011
Table 49 Company Shares of Spirits by Global Brand Owner 2007-2011
Table 50 Brand Shares of Spirits 2008-2011
Table 51 Forecast Sales of Spirits by Category: Total Volume 2011-2016
Table 52 Forecast Sales of Spirits by Category: Total Value 2011-2016
Table 53 Forecast Sales of Spirits by Category: % Total Volume Growth 2011-2016
Table 54 Forecast Sales of Spirits by Category: % Total Value Growth 2011-2016

Wine in Uzbekistan - Category Analysis

HEADLINES

TRENDS
Wine continues to represent one of the strategic directions of the food industry of Uzbekistan. As such, unlike spirits and beer, wine continues to enjoy government support and subsidies in cultivation and development of wineries. This is another reason why all wine companies are gathered under one umbrella and aligned in implementation of one policy. With its main aim of producing import-substituting and exportable wine products, wine has greatly improved compared to early on in the review period.

Production, Imports and Exports

COMPETITIVE LANDSCAPE
Uzvinprom Holding Company as holding company accounts for all of domestic sales and majority of total wine sales. Nevertheless, there is competition between producer companies. Vini Italia Exclusive, with its four popular brands - Classico, Incontro, Tradizione, and Emozione – has performed extremely well in recent years including 2011 which benefits from comparatively recent establishment, modern production technological equipment and improved marketing.

PROSPECTS
The trends observed in wine over the review period are expected to remain over the forecast period. Particularly, distribution and events are expected to remain the same, as will the expectation that home consumption will not develop. There is still one trend that is expected to impact sales of wine positively over the forecast period and contribute to sales. It is the health trend that is expected to strengthen across alcoholic drinks and it is expected to attract some consumers from strong alcohol drinks. Overall, wine is projected to display a constant value CAGR of 2% and a 1% total volume CAGR over the forecast period.

CATEGORY DATA

Table 55 Sales of Wine by Category: Total Volume 2006-2011
Table 56 Sales of Wine by Category: Total Value 2006-2011
Table 57 Sales of Wine by Category: % Total Volume Growth 2006-2011
Table 58 Sales of Wine by Category: % Total Value Growth 2006-2011
Table 59 Sales of Wine by On-trade vs Off-trade Split: Volume 2006-2011
Table 60 Sales of Wine by On-trade vs Off-trade Split: Value 2006-2011
Table 61 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 62 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 63 Wine Production, Imports and Exports: Total Volume 2005-2010
Table 64 Forecast Sales of Wine by Category: Total Volume 2011-2016
Table 65 Forecast Sales of Wine by Category: Total Value 2011-2016
Table 66 Forecast Sales of Wine by Category: % Total Volume Growth 2011-2016
Table 67 Forecast Sales of Wine by Category: % Total Value Growth 2011-2016