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.
Singapure: Asia Pacific Breweries’ H1 2011 profits increase
Group attributable net profit (ANP) increased S$48.9 million or 36% to S$183.6 million while Group revenue rose 23% to S$1.5 billion.
Earnings per share rose from 52.2 cents to 71.1 cents while the Group’s net asset value per share stood at S$4.40.
In view of the significantly higher final dividend paid last year, the Board has approved an increased interim dividend of 22 cents per share (14 cents per share last year), tax exempt (one-tier), to be paid on 20 Jun 2011.
Mr Roland Pirmez, Chief Executive Officer of APB said, “The attributable net profit growth of 36% is a result of our strategic investments in Indonesia and New Caledonia while Vietnam and Papua New Guinea continue to be key profit contributors to the Group. Strong demand for our brands in most of our markets accounted for the 23% revenue gain that the Group commanded.”
South & South East Asia (Singapore, Export Markets, Malaysia, Indonesia and Sri Lanka)
Volume and PBIT rose 37% and 66% respectively, boosted mainly by the acquisition of the breweries in Indonesia in February 2010. Excluding the results from Indonesia from October 2010 to January 2011, PBIT grew 8% due to higher volumes in Singapore, Malaysia and Sri Lanka as well as improved margins in Indonesia.
Indochina (Vietnam, Cambodia and Laos) and Thailand
Volume for the region grew 17%, driven by strong consumer demand in Vietnam. Increased marketing efforts also lifted volume in Cambodia and Thailand. PBIT grew 26%, underpinned by higher volume and better margins in Vietnam. Excluding translation losses, arising mainly from the 16% weakening of the Vietnamese Dong, PBIT grew organically by 45%.
North Asia (China and Mongolia)
The region reported a PBIT of S$0.5 million, turning around from a loss of S$2.2 million reported last year. The improved performance was attributable to a favourable sales mix in China and a higher exchange gain of S$0.4 million from the currency realignment of the US dollar loans in Mongolia. Excluding the impact from such exchange differences, a loss of S$1.4 million would have been incurred compared to a loss of S$ 3.7 million for the same period last year.
Oceania (New Zealand, Papua New Guinea and New Caledonia)
Volume and PBIT grew 8% and 19% respectively. The strong performance was mainly attributed to contributions from the brewery that the Group acquired in New Caledonia in February 2010. Excluding the results from New Caledonia from October 2010 to January 2011, PBIT gained 8% on the back of higher volumes and improved margins in Papua New Guinea.
The rise in corporate office expenses was due principally to increased provision for employee share-based expenses in line with the higher share price during the second quarter.
“Rising inflation in our main markets may dampen consumer demand.
Strengthening of the Singapore Dollar against regional currencies, particularly the Vietnamese Dong, will continue to adversely affect the reported financial results of the Group.
The company share price has appreciated significantly resulting in a higher provision for employee share-based expenses in the first half of the year. Taking the current share price as a reference, similar provisions will be required for the second half of the financial year.”
11 May. 2011