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.
Global brewer under tax lens
Logan Wort, an executive secretary of the African Tax Administration Forum (Ataf), raised the issue yesterday at a tax summit arranged by Deloitte, without identifying the company. He said the decision to discuss the company’s operations followed a report by anti-poverty group ActionAid.
Wort said the five countries were South Africa, Zambia, Tanzania, Ghana and Mauritius. The latter all had bilateral tax treaties with South Africa.
In the report, which was released in November last year, ActionAid accused SABMiller of “dodging an estimated $31 million (R206m) of taxes in Africa and India every year – enough money to educate a quarter of a million African children“. The report referred to “tax avoidance activities, designed to comply with the letter of the law not break it, as in the case of tax evasion”.
ActionAid said it used the term to cover strategies that were “legally permissible but which ActionAid regards as ethically questionable”.
Nigel Fairbrass, a spokesman in London for SABMiller, said the ActionAid report was “poorly researched”. In a response when the report was released, SABMiller said the company did not engage in aggressive tax planning in any part of its operations. And it said the report included “a number of flawed and inaccurate assumptions”.
According to SABMiller, which has 16 breweries and 21 bottling plants in Africa, in the year ended March 31, 2010, the group reported $2.929 billion in pre-tax profit and group revenue of $26.350bn.
“During the same period, our total tax contribution remitted to governments, including corporate tax, excise tax, VAT and employee taxes, was just under $7bn – seven times (the amount) paid to shareholders.
“This amount is split between developed countries (23 percent) and developing countries (77 percent). In both Colombia and South Africa, we contributed over $1bn in taxation to each respective government’s revenues.”
ActionAid, however, said SABMiller avoided tax by holding valuable trademarks for African beers in Europe rather than in their country of origin. “The cost of using the trademarks helps eat into the profits in the African subsidiary, so less tax is paid there,” the organisation said.
The topic of Wort’s address yesterday dealt with challenges to African revenue administrations. Ataf, which now has 29 members, was set up in 2009 to help African countries strengthen their revenue bases through improvements in their administration systems.
Wort quoted research published in March last year by Christian Aid, on the losses to the developing world due to the mispricing of bilateral trade, a practice which enables companies to pay less tax by diverting income to low-tax jurisdictions.
Christian Aid, a relief and development agency, said mispricing caused a $1.1 trillion outflow from developing countries to the EU and US between 2005 and 2007.
Wort also quoted the 2010 Global Financial Integrity report, which said developing countries lost between $98 billion and $106bn a year – about 4 percent of their total tax revenue – due to false invoicing. Global Financial Integrity is a non-profit research and advocacy organisation.
Wort said, apart from “aggressive tax planning schemes” by multinationals, problem areas in Africa included politicians and high-net-worth individuals. And the large informal sectors in most African countries complicated the process of tax collection. Other challenges included high compliance costs and corruption.
6 May. 2011