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.
Malaysia. Carlsberg to raise prices slightly
Managing director Soren Ravn said the company would increase prices by an average of less than 3% across its beer product range due to rising raw material and operating costs.
“The increase in prices is not huge, and is in line with inflation, and this reflects our higher input costs. In the next three to six months, we will appropriately hedge raw material prices,” Ravn said after the company's AGM yesterday.
He said the continued rise in prices of raw materials like malt and aluminium for beer cans might have an impact on the company's earnings in the fourth quarter. “Also, there is a level of uncertainty about 2012. If you look at the situation now, next year looks kind of scary.”
This year, key growth drivers for Carlsberg in Malaysia are its imported premium/super premium beer brands such as Hoegaarden and Asahi and Kronenbourg 1664, as well as its global brand relaunch.
For the first time, Carlsberg will share the same core visual identity worldwide, with the same look and feel in terms of packaging and bottles across more than 140 markets it operates.
Ravn said the company aimed to secure a 20% market share of the premium/super premium beer segment this year.
“The premium beer segment is growing faster than the cheaper beer segment. This is where we see the opportunities,” said Ravn, who also pointed out that the company's brewery was nearing its maximum production capacity.
“We have a road map for the next three to five years, to unlock the bottlenecks in the brewery in order to increase capacity without the need for heavy capital expenditure. So, at least we can grow our capacity at the same pace as our volume,” he said.
Ravn expects a maximum growth of 5% for the beer market in terms of volume this year.
“There was a decline in beer consumption in 2009 while we saw a 10% growth in volume for the beer market last year. I think we will see a low single-digit growth in 2011 as 2010 was a sort of catch-up period for the beer market.”
27 Apr. 2011