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.
Carlsberg CEO downplays threat of Russian PET beer bottle ban
Russian deputy Viktor Zvagelsky introduced a bill earlier in the year that now includes a proposal to ban sales of PET beer bottles by January 1, 2013.
Ban not likely, says CEO
But Joergen Buhl Rasmussen, CEO at Carlsberg, which has a major presence in the Russian beer market, does not expect the proposal to make its way into law.
“We don’t think this is very likely to happen – banning PET for beer,” said the CEO during a conference call on Carlsberg’s first quarter results.
And even if it is implemented Rasmussen does not think a ban would have a major impact on Carlsberg – for whom PET packed beer only accounts for a small percentage of Russian profits. He even suggested that there could be a positive impact for Carlsberg.
“Consumers would start drinking from a different packaging type – cans or glass bottles – which would be positive in terms of premiumisation.”
Other beer measures
The proposal to ban PET beer bottles came in as an amendment to a bill introduced earlier in the year that includes other anti-alcohol measures that would impact the Russian beer market. These include restrictions on high strength beer and night time drinking.
But a company spokesperson told BeverageDaily.com that the Russian team at Carlsberg is comfortable with the situation as it stands.
The spokesperson added that an update is expected next week as the bill makes its way through the Russian parliament.
While Carlsberg remains skeptical about the chances of the PET beer bottle ban making it into the final legislation, others think there is a strong possibility it could be implemented.
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.”
First quarter results
The Russian beer market has already been hit by a 200 per cent excise duty hike that came into force at the beginning of 2010. It led to significant destocking in the first quarter of last year that gave the Carlsberg 2011 Q1 figures, published this week, a significant comparative boost.
The company said like-for-like Eastern European sales, which include the Russian numbers, were up 28 per cent.
The distorting effect of the 2010 Russian comparison also gave a big boost to total Q1 sales which were up 14 per cent to DKK 12.5bn while operating profit grew 38 per cent to DKK 1bn.
12 May. 2011