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.
SABMiller May Face Coca-Cola Amatil Payout in Any Foster’s Bid
The terms of their partnership require any SABMiller alcohol expansion in Australia to be first offered to their Pacific Beverages venture, which holds rights for brands including Peroni, Miller and Grolsch, Coca-Cola Amatil Chief Executive Officer Terry Davis said in a Feb. 23 interview.
“If the joint venture says no, then they have a bit of a problem,” Davis said by telephone. “You can expect that I would want fair value for those brands.”
Pacific Beverages was formed in 2006 with an aim to create Australia’s third-largest beer business in a market where more than 90 percent of sales are controlled by Foster’s and the Lion Nathan unit of Kirin Holdings Co. SABMiller is working with JPMorgan Chase & Co. to study a bid for Foster’s once Australia’s biggest brewer completes a spinoff of its wine unit, a person with knowledge of the situation has said.
“There might be a breakup fee in the hundreds of millions,” said Theo Maas, who holds beverage stocks among the $5 billion he helps manage at Arnhem Investment Management in Sydney.
Nigel Fairbrass, a spokesman for London-based SABMiller, declined to comment on the venture with Sydney-based Coca-Cola Amatil. Troy Hey, a spokesman for Melbourne-based Foster’s, declined to comment on “market speculation” the company may be a takeover target.
Speculation increased that SABMiller may purchase Foster’s, maker of Australia’s top selling brew Victoria Bitter, after the Melbourne-based company said on Feb. 15 that it plans to spin off the world’s second-largest wine business by May to focus on boosting beer earnings. Outgoing Chief Executive Officer Ian Johnston said on a conference call that day the Foster’s board of directors would consider any bid if it came along.
“When I negotiated the contract I was mindful of this,” said Davis, 53.
Pacific Beverages, which is 50 percent owned by each company, posted its first annual profit this week, with Coca- Cola Amatil earning A$1.5 million ($1.52 million) from it in the 12 months ended Dec. 31.
The venture last year started production at a new A$120 million brewery near Newcastle north of Sydney as it seeks to win more sales of draft beer in pubs and clubs.
The venture, which also sells Jim Beam bourbon and Russian Standard vodka, sells five beers in Australia’s top 20 premium packaged labels with both Grolsch and Peroni Nastro Azzurro in the top ten.
“The pubs realize they make more margin selling a premium beer than they do selling a commercial beer,” Davis said. “The independent customers in particular want to break the stranglehold of the major brewers.”
25 Feb. 2011