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.
Australia. Small brewers shrug off Foster’s wet weather beer sales slump
Foster’s Group yesterday reported revenue in its beer division fell 5.3% in the six months to December 31, to $1.3 billion, with the company saying total beer market sales fell 7% during the period, mainly due to unseasonal weather.
But evidence suggests that Australia’s big brewers are feeling the pain of falling sales.
Fosters and Lion Nathan have been losing market share during recent years as competition in the industry increases, with foreign brewers and small Australian brands growing in popularity.
Research from IBISWorld shows that while the big two still account for 80% of revenue a range of smaller boutique brewers has increased market share in recent years.
Cam Hines, co-founder of Melbourne-based boutique brewer Mountain Goat Beers says weather had little effect on his business.
“Our sales have been increasing 40% annually for the last two or three years and this summer has been no different,” he says.
People are moving away from the larger brewers in droves. They like small brewers, they like the story behind it, they are more adventurous and they want to taste different beers.”
Coopers chairman Glenn Cooper said cold weather didn’t normally help his business but the company positioned its products to meet conditions and had promoted sales of Coopers Best Extra Stout during the second half of the year, with a resultant 7.7 per cent increase in sales.
“Stout is normally a winter drink but we think the cooler start to summer has extended its season and people have been enjoying it later in the year,” he says.
Increased interest in mild ale around Australia saw Coopers experience significant growth.
“While a number of other beverage producers have reportedly been affected by the seasonal slowdown we are delighted that we have been able to increase our overall sales by 4.7%,” Cooper says.
“It shows interest in Coopers products is continuing to grow around Australia.”
Foster’s major competitor, the Japanese-owned Lion Nathan which produces Tooheys and XXXX, has shown that beer manufacturers can fight against weather conditions, posting a 4.1% increase in Australian beer sales in the 2010 calendar year.
Increased competition in the beer market comes at an interesting time for Foster’s with the firm in the final stages of splitting its beer and wine operations into two ASX-listed companies.
The new Treasury Wine Estates is expected to list in coming months.
Forster’s shares dropped almost 2% yesterday to $5.74.
16 Feb. 2011