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.
Senior politician puts future of PET in Russian beer market in doubt
Russian deputy Viktor Zvagelsky is introducing a bill that would ban sales of PET beer bottles by January 1, 2013.
As part of ongoing efforts to fight Russia’s alcohol problem, the bill aims to prevent sales of big volume bottles and is being accompanied by restrictions on high-strength beer and night time sales.
Nick Waite, head of market research at Pira, which has just published a study on PET in the beer market, said: “There is a good chance that the law will be passed.”
If the law does come into force, it is likely to have a major impact on the PET beer market globally as Russia is one of the biggest markets in the world.
Ironically PET had established such a major foothold in the country because of previous government policies to fight alcohol abuse.
Waite explained: “You had a significant reduction in glass bottle capacity in Russia at the time of Gorbachev's anti-alcohol crusade in the 1980s and the effect was that glass bottles were reused time and time again, sometimes showing signs of damage/staining, and the result was that glass lost some of its cachet and Russian consumers were a bit more open to the idea of PET.”
Despite the potential setback in Russia, Pira expects that PET will continue to become more popular in global markets as technical improvements make the packaging option more attractive. For example, oxygen scavenging closures can now be used to remove oxygen throughout the life of a product so a PET packaged beer can have a lower oxygen content on the shelf than it had when first filled.
Global growth forecast
Overall Pira predicts that global PET beer bottle consumption will grow at a compound annual growth rate of 5.3 per cent to reach 7.7 billion bottles by 2015.
PET has plenty of potential for growth as it currently holds just 2 per cent of the global beer packaging market. Asia had been tipped as the big driver for future growth but Pira said that recent growth in China has been less than what some had hoped for.
Waite said: “Consumers new to beer in China tend to prefer beer in glass as glass has the same kind of prestige status as in the west.”
He added that “the jury is out” on the potential of PET beer bottles in China but Pira is more optimistic about other markets. Brewers are preparing for a big PET push in India and so growth there is expected to be high.
And in mature markets PET is being used more and more to package beer. Waite said: “PET is increasingly used for the packaging of beer sold at outdoor events. PET is more suitable than glass here for safety reasons more than anything as it is unbreakable, but it is also easy to carry around. Safety and convenience elements may in time lead to PET bottles being used in nightclubs although to date it has not made significant inroads here.”
11 May. 2011