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 plc To Bid On Brewer
Canada's thwarting of BHP Billiton's $39-billion hostile bid for PotashCorp last year was a setback for big companies looking for acquisitions.
Before that bid, five large cross-border mining deals had already been rejected by regulators or governments, according to the Financial Times.
Competition authorities around the world have started to crack down, especially in Europe.
"It's becoming more and more difficult to get regulatory approval for the really big transactions," said Leon von Moltke, head of debt restructuring at RMB.
But Rob Forsyth, head of industrials at Investec Asset Management, said: "With SABMiller and AB InBev there isn't much in-market overlap.
"Beer is all about branding and marketing."
Forsyth said marrying the cost-cutting culture of AB InBev with SAB's marketing would be advantageous.
In 10 years, rapid consolidation resulted in the top four breweries - AB InBev, SABMiller, Heineken and Carlsberg - accounting for nearly half the world's beer sales.
Brewery deals have totalled $141.9-billion in five years, and the opportunities for more consolidation among the big players looks limited, though executives expect acquisitions to continue as global brewers expand.
Organic volume growth is expected to come from developing markets. Emerging markets have grown at 6.8% in five years while developed markets dropped to 3.4%. The biggest growth is in China, Africa and Eastern Europe.
About 80% of SABMiller's sales and profits come from emerging markets.
AB InBev is bigger than SABMiller in terms of volumes brewed (348-million hectolitres versus 244-million hectolitres) and market capitalisation ($87-billion against SABMiller's $54-billion).
A merged group would produce one-third of the world's beer, combining brands such as AB InBev's Budweiser and Stella Artois with SABMiller's Castle, Miller Lite and Peroni.
There is surprisingly little overlap between the two, apart from in the US, which would present a problem.
The combined group would have nearly 80% of the market in the US, but SABMiller would have to sell its 58% stake in MillerCoors in the US.
Analysts are divided about the possibility of a merger, and no one sees it happening soon.
Four years ago, InBev directors met their SABMiller counterparts but no deal materialised. At the time InBev balked at the prospect of having to pay a premium to the SABMiller share price - which has since doubled.
Traditionally, big deals have been about willing sellers and buyers. But national interest is a growing factor and the government has become protective of SA-founded assets. The Department of Trade and Industry wants the Competition Commission to block Kansai Paint of Japan's hostile takeover of Freeworld Coatings. And various departments have become involved in Walmart's buyout of Massmart.
4 Apr. 2011