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’s cassava beer plans mature
The UK-listed brewer, like many food and beverage companies, is seeking to localise sourcing – in this case, switching barley for domestically grown cassava in Africa – in an attempt to secure supplies and cut costs.
Additionally, SABMiller hopes that having a cheaper beer will allow it to tap the vast swaths of drinkers who now stick to home brew.
But the obstacles proved bigger than the brewer envisaged.
The beer is now expected to go on sale in Mozambique in six to nine months’ time, nearly a year after the initial launch plans for late 2010. Assuming this is successful, the beer will then be rolled out to other parts of the continent.
“Where we are and what we have achieved in the timing we have set, we have done quite well,” said Gerry van den Houten, technical, supply chain and enterprise development director at SABMiller’s African operations.
“But if we could have done it six months earlier, that would have been great.”
The original plan was to brew the cassava beer in Angola, and the group built a state-of-the-art brewery just outside the capital Luanda.
The setbacks ranged from political and financial – when oil prices fell in late 2009, the crunch on foreign exchange meant SABMiller could not get enough to pay suppliers – to technical issues.
The squeeze on foreign exchange prompted SABMiller to move the pilot project from Angola to Mozambique, where it has succeeded in winning concessions on excise tax: the cassava beer will pay just one-quarter of the duty payable on mainstream beer.
That, in turn, means SABMiller can sell its beer at 65 to 70 per cent of the price of mainstream beer, a level at which it aims to bring in a whole new set of drinkers. It believes the brand could account for about one-fifth of its portfolio in the region.
Mr Van den Houten said the company was now “90 per cent there” in terms of processing technology after several headaches along the way.
Cassava is largely made up of water, making it heavy and expensive to transport, and also suffers from a short shelf life once harvested.
The brewer has got around this by developing mobile processing units capable of squeezing out the water and bringing the plant to a stable (and lighter) state ready to be transported to the mill.
Despite the travails, Mr Van den Houten is confident localising the supply chain will prove beneficial.
“It has cost advantages, shortens the supply chain and gives us an opportunity to get involved in local entrepreneur initiatives and job creation,” he said.
SABMiller now imports some 80 per cent of its raw materials, including packaging, mainly from Europe and South Africa.
Cassava is Africa’s largest crop in terms of tonnage, but is very much a subsistence crop according to Mr Van den Houten.
Depending on how much drinkers take to the new brew, he reckons the company could take crops from 2,000 smallholder farmers in Mozambique.
8 Mar. 2011