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.
Ireland. Heineken warn of challenging 2011
Heineken Ireland’s 2010 turnover came in at €402 million — pretty much in line with the previous year’s total — but its share of the overall beer market on the island of Ireland grew by 0.2% to 26.3%.
Heineken and Coors Light were the fastest growing brands in the Irish pub-trade last year.
The latter "significantly" outperformed the Irish beer market, with growth levels of 6.2%, while the Heineken brand, itself, remains the country’s best selling lager brand, with a 41% share of the pub-based lager market.
Meanwhile, the company’s stout brands — Murphy’s and Beamish — "performed broadly in line with the declining stout market for 2010".
The company has, however, pointed to the potential for a tough year ahead.
"The pub trade is totally dependent on disposable income. Severe constraints on credit — combined with levels of consumer disposable spend being stretched — will certainly make it tough for all to compete, and in reality 2011 will be another tough period for the industry," management said yesterday.
Heineken Ireland did point out that last year’s 20% excise reduction has had the desired effect on arresting cross-border purchasing, resulting in 6% growth in the off-trade sector, but said more needs to be done.
"The overall situation remains extremely difficult for a key national industry that continues to support nearly 75,000 jobs and provides €2bn in VAT and excise revenues to the state.
"Some form of stimulus is needed here to arrest the decline of the pub segment in the Irish marketplace of today," the company added.
The value of Ireland’s total beer market fell by 6%, or €200m, last year to €2.6bn. Meanwhile, on a group-wide basis, Heineken NV reported a 9.7% increase in annual revenue to €16.1bn and a 41% rise in net profit to €1.44bn.
Group management said that its European focus, this year, will be on innovation and marketing, while volume development will be the key focus in the emerging markets of Latin America, Africa and Asia.
17 Feb. 2011