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.
China. Tsingtao Brewery first quarter profit up 40 pct
Tsingtao, in which Asahi Breweries holds a stake of more than 19 percent, said its net profit rose to 393.4 million yuan ($60.4 million) for the three months through March, from 280.9 million yuan a year earlier.
'During the reporting period, the company maintained the satisfying sales momentum, especially as driven by the rapid growth of the mid-high-end products,' the company said in a filing with the Hong Kong stock exchange on Thursday.
Sales volume rose 22 percent year-on-year to 15 million hectolitres, with sales volume of Tsingtao rising 36 percent.
Analysts are positive on Tsingtao's business outlook as China's beer consumption continues to rise, and the firm continues to grow its sales through acquisition.
Analysts had expected Tsingtao to post more than 20 percent rise in sales volume for the first quarter of 2011, as distributors stocked up prior to increase in its beer prices.
They gave no forecast for its quarterly earnings.
Tsingtao hiked prices of its main brands by about five percent in the first four months of 2011 to help offset rising packaging and labour costs, and barley prices, analysts said.
This was prompted by a 3-4 percent year on year increase in packaging costs, 30-40 percent rise in barley prices and a 10 percent increase in labour costs, Barclays Capital said.
Barclays expects stable gross margins of 35.1 percent for Tsingtao in 2011 as compared to 35.2 percent in 2010.
'Facing the rising barley prices and packaging costs, it is necessary for it (Tsingtao) to hike price further in order to maintain gross margin at the current level of about 35 percent,' said William Lo, analyst at Ample Capital.
Tsingtao aims to boost annual production capacity to 100 million hectolitres in the next five years. It is China's second-largest brewer by volume after CR Snow, a joint venture between China Resources Enterprises and SAB Miller .
It also competes with Heineken, Carlsberg and Kingway Brewery in China, the world's biggest beer market.
Tsingtao's Hong Kong-listed shares are up 1.97 percent so far this year, compared with a 3.34 percent rise in the broader Hang Seng Index. ($1 = 6.512 Chinese Renminbis)
29 Apr. 2011