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.
APB Increases brewing capacity in Vietnam for further growth
Brewery in Ho Chi Minh City, already the Group’s largest brewery in Vietnam, will add another 1.4 million hectolitres in capacity
Aligns with vision to be the most responsible brewery group in Vietnam
On going expansion programmes to breweries in Danang and Hanoi.
To further strengthen its position and sharpen its competitive edge in Vietnam, Asia Pacific Breweries Ltd (APB) today announced that it will increase the production capacity of its brewery in Ho Chi Minh City from 2.8 million hectolitres to 4.2 million hectolitres. APB holds a 60% interest in the brewery there.
On the milestone, Mr Roland Pirmez, Chief Executive Officer, APB said “The Vietnamese beer market has been growing with the rapid economic development of the country. Given its sizeable population of 87 million people and rising affluence, particularly amongst its large young population, beer demand has been growing at a double digit rate and we believe this rate of growth will continue in the medium term. Demand for our brands has been encouragingly strong and this expansion will enable APB to meet anticipated growth for our key brands, Tiger, Heineken and Larue.”
The approximately S$90 million investment will add a second canning line that produces up to 90,000 cans per hour, fermentation facilities and malt silos as well as comprise a brew house upgrade and warehouse extension.
Committed to sustainability, the expansion also includes a waste water treatment plant that is designed to further optimise water usage. The initiative is consistent with the brewer’s vision to be the most socially responsible brewery Group in Vietnam by 2015. Over the next four years, the brewer has plans to reduce thermal energy consumption by another 15%; cut water used for every litre of beer produced by a further 38%; and lower carbon footprint by 20% through alternative “greener” transportation arrangements with its partners and suppliers in the supply chain.
When the enhancement works complete in December this year, the APB brewery in Ho Chi Minh City will enhance its position as the largest brewery in Vietnam and the APB Group. Meanwhile, total production capacity of the APB Group in the country will be increased by over 25%. This added production will be significant in further driving top line gain for the Group in Vietnam with rising disposable income, particularly in Ho Chi Minh City where per capita income is approximately twice the national average.
Concurrent to the brewery expansion in Ho Chi Minh City, APB is also expanding capacities in its breweries in Hanoi and Danang by a further 450,000 hectolitres in total. These expansions are scheduled to be completed by fourth quarter of 2011.
Mr Chris Kidd, Regional Director, IndoChina, APB elaborated, “These investments underline the importance of Vietnam to APB and demonstrate our confidence not only in the future of our brands there but also the confidence we have in the medium term for the Vietnamese economy being able to generate sustainable beer demand growth.”
Currently, APB participates in the market of Vietnam through four breweries in central and southern Vietnam; and one brewery in the north.
In the last 10 years, APB has seen intensive expansion of its production that drove its successful advancement and growth in Vietnam. This latest initiative follows the previous expansion that was completed in 2009 when the brewery in Ho Chi Minh City also introduced its first canning line to fulfil rising demand for canned beers.
Vietnam, together with Cambodia and Laos form the Indochina region of the APB Group. The region accounted for some 48% of APB’s total PBIT last financial year. For the full year ended 30 September 2010, the region generated a revenue of S$935.4million and reported a PBIT of S$241.7million. They marked an increase of 13% and 48% respectively over the previous year.
For the six months ended 31 March 2011, Vietnam, together with Cambodia, Laos and Thailand reported a PBIT gain of 26%. The performance was underpinned by higher volume and better margins in Vietnam.
24 May. 2011