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.
Singapore: APB’s attributable net profit 65% up in Q1
Mr Roland Pirmez, Chief Executive Officer, APB commented, “The significant top line gain was attributable to volume contributions from our new businesses in Indonesia and New Caledonia, robust organic growth mainly as a result of beer price increases in Papua New Guinea and Vietnam and stronger beer sales in Singapore and most of our regional markets, driven by keen festive demand.”
South & South East Asia (Singapore, Export Markets, Malaysia, Indonesia* & Sri Lanka)
Volume and PBIT rose 82% and 134% respectively. The results of the corresponding period last year excluded performance from Indonesia as consolidated earnings from the market were only taken into account from February 2010. Excluding the results from Indonesia, the region reported a volume increase of 12%, owing to stronger sales in Singapore and Malaysia.
Indochina ( Vietnam, Cambodia and Laos) and Thailand
Overall volume grew 18% due to stronger sales, particularly in Vietnam, in the run up to TET (Lunar New Year). As a result of this increase in volume, together with price increases in Vietnam, PBIT rose 40%. Excluding translation losses, PBIT grew organically by 56%.
North Asia (China and Mongolia)
Turning around from a loss of S$3.0 million reported last year, the region contributed a PBIT of S$0.2 million. The improved performance was attributable to favourable sales mix, lower overheads and exchange gain of S$1.6 million from the currency realignment of US dollar loans compared to an exchange loss of S$0.3 million last year. Excluding the impact from such exchange differences, a loss of S$1.4 million would have been incurred.
Oceania (New Zealand, Papua New Guinea and New Caledonia*)
Volume and PBIT grew 12% and 20% respectively. The improved earnings were mainly due to the new profit contributions from New Caledonia as well as price increases in Papua New Guinea. The results of the corresponding period last year excluded the performance from New Caledonia which was consolidated for the first time from February 2010. Excluding the results from New Caledonia in the first quarter ended 31 December 2010, PBIT grew 4%, owing to better margins in Papua New Guinea.
With a stronger Singapore Dollar and a high proportion of the Group’s earnings from outside Singapore, the financial performance will continue to be sensitive to currency movements in the countries where the Group operates.
* On 10 February 2010, the acquisition of a 68.5% stake in PT Multi Bintang Indonesia Tbk (“MBI”) in Indonesia and an 87.3% stake in Grande Brasserie de Nouvelle Caledonie SA in New Caledonia was completed. As of 16 April 2010, APB holds an effective interest of approximately 80.6% in MBI.
13 Feb. 2011