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 Expects Colombia Volume Sales Rebound In 2011
Richard Rushton, president of SABMiller's Colombian unit Bavaria, said in an interview Tuesday that "we would expect volumes to start to reflect growth in the low to mid single digits in a reasonable short term such as in the next 12 months."
The company's medium-term guidance is for 4% to 6% volume growth, but Rushton said he was unsure that growth for this year would be within that range.
"I'm not sure it's going to be 4% to 6%," he said.
The company's main concern now is a harsh rainy season, which can affect distribution. "I'm a little cautious until we see the clouds lift," he added.
SABMiller's volume sales declined 6% for the 12 months through March 2011, the company said in a statement. The contraction in Colombia was fueled by an emergency tax levied in February 2010 that the government used to plug a deficit in public health services.
After keeping prices mostly unchanged for a few years, the company also hiked prices by 8.3%, something which "had an immediate impact on our volume performance," Rushton said.
The last tranche of the tax hike came into effect in February 2011, increasing the consumer tax on beer from 14% to 16%, but the company decided not to increase prices.
"We're pursuing price constraint aggressively," Rushton said.
Adding to the impact of the higher tax on volume sales, 2010 was an electoral year in which alcohol sales were banned during several weekends. Another woe facing the company was a devastating streak of torrential rains in November and December that crippled roads and made several regions inaccessible to delivery trucks during months in which beer consumption usually jumps.
"A perfect storm hurt us," Rushton said.
But the impact of the higher tax is "bottoming out," he said, and the company posted beer volume growth in February and March from a year earlier.
"We're seeing reasonably encouraging signs that the clouds are lifting," he said.
An ongoing concern, however, is the downpours that have recently restarted in much of the country, once again blocking key roads. But it is only a matter of time before the rains cease, Rushton said.
"We're optimistic that we will see the end of this weather and with the end of the weather we will start to post some volume growth," he added.
SABMiller has a dominant position in Colombia, controlling 97% of the beer market. Strong economic growth should filter down to higher consumption, which should help fuel growth, Rushton said.
"We're cautiously optimistic that some of the benefits of higher economic growth will filter through," he said. Government officials have said that economic growth in 2011 could surpass 5.5%.
The government is taking the right steps in making efforts to upgrade Colombia's shaky infrastructure and broaden its tax base, something that could also help the unit, Rushton said.
"The government is trying to allow the private sector to grow and to create conditions for growth," he said. SABMiller pays nearly 3.7% of the total national tax intake.
The government is also taking steps to curb the sale of contraban and adulterated liquor, something that should help boost SABMiller's beer sales, Rushton said.
Beer consumption in Colombia is still below other countries in the region, something that gives "plenty of room for growth," he said.
20 Apr. 2011