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.
Paulaner Brewery focusing on expansion
Changes to the distribution structure that the group consistently implemented in the past year help BHI in intensifying its efforts in terms of the distribution channel trade and moving closer together within the brewery group.
Brau Holding International is increasingly controlling sales and purchases. “The restructuring of our domestic distribution was an especially far-reaching step. Since then, the brands Paulaner, Hacker-Pschorr, F?rstenberg, Riegeler and Thurn und Taxis have been marketed in trade by a joint distribution organization,” says Roland Tobias. “We also created twofold structures in restaurant distributions.
This has made our market approach more effective and efficient.” A central goal of the Munich group is to increase the consumer frequency per brand with the help of the new distribution structure. Key account management is now also able to offer the dealers a wide brand portfolio.
The signs for the overall brewery market are not rosy, meaning that the pressure to consolidate will probably continue in 2011. Only large, economically strong breweries will be able to weather the reserved domestic consumption behavior in conjunction with long-term price wars in trade. Smaller breweries that cannot count on cushioning by association will have a hard time securing significant regional or national shares with regional products.
BHI on the other hand is well prepared as a large association thanks to its strategic concept and will initially focus on itself by strengthening its own brands. “We do not preclude the possibility of acquisitions, but our focus will be on the development of our current brands. Our portfolio offers sufficient potential for market share gains,” says Tobias.
While the beer market and its sales are stagnating at home, BHI is looking towards export, especially with its top brand Paulaner. The ambitious goal is to double exports by the year 2015. Roland Tobias explains: “The most important foreign markets for Paulaner are Italy, the U.S. and France. Asia is also becoming more and more important. Overall, we export to more than 60 countries. Up to now, exports made up about one quarter of the turnover of the Paulaner Brewery Group.
The trend is clearly rising.” The stage is set for further expansion and work on its implementation has begun. In order to establish oneself amongst an international target market and make sensible investments, one should leave nothing to chance. A strategic international marketing scheme is currently being created in order to be able to address international market demands. This requires on-site representation. “Our team in Munich, our subsidiaries in Italy and the U.S., our on-site employees and numerous international partners create a good starting point in order for us to realize our growth objectives.”
28 Mar. 2011