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.
US. New head of Iron City brewery aims to expand production with new products
Uni-World Capital LP acquired the Iron City and IC Light labels as well as other brands last week from the brewery's owners, an investment group that acquired it at a 2007 bankruptcy auction.
Uni-World named Edwin Lozano, 43, whose resume includes stints at PepsiCo, Miller Brewing and Coca-Cola, president and CEO of the company.
In an interview Tuesday, Lozano declined to disclose the purchase price or provide current production figures. He said no debt was used to make the purchase. Uni-World also acquired transportation equipment used to deliver the beer to wholesalers. The private equity concern also assumed contracts with wholesalers and City Brewing, the La Crosse, Wis., brewer that makes Iron City's beers in the former Rolling Rock brewery in Latrobe.
For the time being, Iron City's new management team of 16 will work out of the historic brewery's former offices on Liberty Avenue in Lawrenceville, Lozano said. He expects the company to employ more than 20 by year end.
Uni-World managing partner Christopher P. Fuller said the new owners "intend to reinvest future cash flows back into the business."
Uni-World takes on a 150-year-old beer that has suffered from a succession of new owners since 1995, when the brewery was sold for $31 million at a bankruptcy auction. That ownership group sought bankruptcy protection in 2005 after the Pittsburgh Water and Sewer Authority threatened to terminate service over unpaid bills. The brewery was sold in 2007 at another court-supervised sale to an investment group led by waste industry executive John Milne, who was later convicted on securities fraud charges.
The brewery's decision to end brewing in Lawrenceville in 2009 and move production to Latrobe, as well as its continuing disputes over water and sewer bills, further diminished the popularity of the hometown beer.
Lozano said he would be more involved in the Pittsburgh community than the previous ownership group was.
"I'm about growing businesses," Lozano said. "There's no doubt we're firmly rooted in Pittsburgh and will strengthen and deepen our ties to Pittsburgh."
He said the contract with City Brewing, which was to expire in about three years, has been extended two years.
Uni-World's priority is to reposition Iron City and IC Light to appeal to younger drinkers, who account for a substantial share of the market, Lozano said. New advertising should hit the market within 90 days, but he declined to put a price tag on the campaign.
Uni-World also plans to expand other brands such as American Beer, an economy brew. Lozano said companies in China, Russia and Chile have expressed an interest in importing the beer, and that his global marketing experience with Miller and Pepsi would enable him to capitalize on those types of opportunities.
There are also plans to revive dormant brands such as Olde Frothingslosh and J.J. Wainwright's.
"Some of them are just diamonds in the rough waiting to be polished up and put into the marketplace," Lozano said.
Uni-World expects to introduce one or two new products this year and will ramp up product development next year, he said. Much of the focus will be on craft beers, the only segment of the beer industry enjoying healthy growth.
Lozano said wholesalers were excited about the change in ownership.
"They see we're putting our money where our mouth is," the Queens, N.Y., native said. "They welcome my background and experience."
Uni-World faces a new player in the nostalgia beer market. Upper St. Clair attorney Mark Dudash brought the Duquesne Beer label back to the market last fall. Dudash said the eighth batch of Duquesne currently is being brewed at the same Latrobe plant where Iron City is produced. The beer debuted in bottles and is now available in 30-pack cans.
"Things are going very, very well," Dudash said.
7 Apr. 2011