The beer market dynamics in Russia is approaching zero, yet major brewers are divided into those who developed considerably in 2017 and those who considerably reduced their volumes. For instance, company Efes has managed to substantially extend their sales due to restrained pricing policy and activity in the modern trade. Heineken has also demonstrated an excellent performance promoted by significant increase of advertisement budgets launching a non-alcohol sort of the title brand and unusual activity in the economy market segment. Carlsberg and AB InBev have been focusing on margins and lost a market share of their inexpensive brands. Serious dependence on PET package and mass enthusiasm about Zhigulevskoe have negatively impacted the most of big regional brewers, that have been for the first time pressed by the leaders in the key sales channels, especially in Volga and Central regions. In the small business there has been a noticeable slowdown in appearing of new restaurant breweries, yet the number of craft breweries has been growing rapidly. In 2018, the beer market is likely to grow a little, while the share of AB InBev Efes may decrease due to the integration. ...
“Catalogue of Russian Beer Producers 2018” includes 1070 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft microbreweries.The catalogue includes 32 large breweries, 75 regional breweries, 693 industrial mini- and microbreweries as well as 270 restaurant breweries. ...
Global hop marketA local alternative to mass beer suggested by independent brewers has been successful and is now altering the global market. Beer is becoming more diversified, so transnational companies have to accept the new game rules and to switch focus to young and fast growing markets. All these processes increased the demand for aroma and bitter hop as well as their acreage expansion on two continents. However now there appeared a downward trend of alcohol consumption in the world, so even special sorts can soon turn to be sufficient. In this connection the dynamic American hop market is already facing some problems. EU hop producers have become more cautious, they are not racing to exceed the demand and look forward with more confidence, judging by the contract terms.
Hop Market in RussiaGermany still dominates the Russian market, yet over the recent two years one has been able observe a continuous success of Czech hop suppliers. Their expansion and growing popularity of hops from the United States became the drivers of supplies growth in 2016 despite the preceding modest harvest crop in the EU, as well as the factor of relative stability in 2017. In this connection, in 2017, the ratio of the varieties continued to shift towards the aroma ones, and the supplies of Magnum hop and other alpha varieties were reduced. However, the import of bitter hop pellets is partially replaced by extracts, especially from the major beer manufacturers. Total volumes of alpha acid supplies, according to our estimation, decreased by approximately 5% and returned to the level of 2015. Barth Haas Group continues dominating the hop products market; HVG also increased its weight. At the same time, Morris Hanbury significantly reduced the supplies in 2017.
US. Small Brewers Seek to Modernize Archaic Laws to Reflect Changes in the Beer Industry
“After decades of the same regulations, today’s marketplace has made Massachusetts state law damaging for small brewers in our state, jeopardizing both consumer choice and the hundreds of jobs in our industry”
While the industry has changed dramatically, the laws that regulate brewers and their distributors (also called wholesalers) have not. Laws passed in 1971 were written to protect small, local wholesalers from the powerful and dominant national brewers. Specifically, Massachusetts passed laws making it difficult, if not impossible, for a brewery to ever switch distributors. Distributors in those days represented very few brands, and the loss of any one of them was potentially catastrophic.
Today, thanks to the American Craft Beer Revolution, there are more than 1,200 small breweries nationwide, including almost forty brewers here in Massachusetts. The archaic laws of the 1970s need to be modernized to reflect the new marketplace, and State Representative Alice Peisch (D- Wellesley) filed legislation, HD 2759, to bring the law in sync with the American beer business in the 21st century. The legislation is lauded by the Brewers Association, who represents all craft brewers nationwide.
“Modernizing the current law to allow for more flexibility for small brewers and more choice for consumers is what today’s marketplace needs. This bill will allow small brewers to make their product more widely available, while also giving adequate protections to wholesalers,” said Representative Peisch. “I look forward to working with all interested parties to make this bill a reality.”
The legislation that Representative Peisch filed is carefully worded so that it will continue to protect wholesalers from the big, national brewers, but it will create opportunity for small brewers to switch distributors if the brewer feels they would be better served moving to a different distributor who would help make their beer more widely available at retail. Substantial compensation would be offered to the existing distributor by the small brewer.
Increasingly, the smallest craft brewers are reporting that some wholesalers focus on big brands while neglecting to deliver their craft beer brands to stores and restaurants, allowing them instead to collect dust and go stale in warehouses. Brewers have little recourse even when a wholesaler fails to perform. This is occurring at a time when consumers are clamoring for high quality, innovative craft beers. The Massachusetts Brewers’ Guild wants to support every brewery’s opportunity to succeed. This legislation is critical for the job security of the hundreds of workers employed at breweries in Massachusetts.
“After decades of the same regulations, today’s marketplace has made Massachusetts state law damaging for small brewers in our state, jeopardizing both consumer choice and the hundreds of jobs in our industry,” said Rob Martin, president of the Massachusetts Brewers Guild.
The Guild appreciates that brewers and wholesalers forge essential partnerships, and one cannot survive in business without the other. So, by working through the legislative process, it hopes to reach an agreement that protects both brewer and wholesaler and enhances their common opportunities for success.
In July 2010, the legislature did not act on a proposal made by wholesalers that would impose even stricter state laws. The wholesalers refiled that same legislation this year. The Guild feels strongly that now is the time to loosen, rather than tighten restrictions imposed on small brewers to allow small brewers to continue to grow and create jobs in the Commonwealth.
9 Feb. 2011