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.
Heineken-APB China (HAPBC) Divests Stake in Kingway Brewery Holdings
•Offer price at a premium of 63% over Kingway Brewery’s closing price on 8 March 2011
Heineken-APB (China) Pte Ltd11 (“HAPBC”) has, today, entered into an agreement to sell its stake of 365,767,453 ordinary shares in Kingway Brewery Holdings Limited (“Kingway Brewery”). HAPBC is an associate company of Asia Pacific Breweries Limited (“APB”).
The offer for the shares, which represent approximately 21.37% of the issued share capital of Kingway Brewery, is worth RMB1.08 billion (equivalent to approximately S$205 million based on an agreed exchange rate mechanism). The value is subject to further adjustments in share capital or securities held by HAPBC in Kingway Brewery and any other factors that may impact Kingway Brewery shares before completion of the proposed transaction.
Based on the latest audited consolidated accounts of HAPBC group as at 30 September 2010, the book value of the shares amounted to approximately S$119.0 million.
“The offer represents an estimated premium of 72% over the book value of our investment resulting in a gain of approximately S$76 million after deducting foreign exchange and transaction related expenses. By virtue of its 50% stake in HAPBC, APBL’s share of the gain from disposal will be approximately S$38 million. We believe that this is the best possible option for this asset, given the commissioning of our new brewery in Guangzhou and our current strategy to focus on the premium segment in China” commented Mr Roland Pirmez, Chief Executive Officer, APB. In this context, Mr Pirmez expressed satisfaction with the performance of the group’s operations in China.
The completion of the proposed transaction is dependent on whether GDH Limited (“GDH”), the controlling shareholder of Kingway Brewery, will acquire the shares on the same or equivalent terms that have been offered to HAPBC. Should GDH decide to do so, the agreement will lapse.
A further announcement on the decision of GDH and the development of the proposed transaction will be issued.
9 Mar. 2011