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.
Romania. Ursus Breweries’ volumes drop 8%
TIMISOREANA continues to be “Romania’s favorite beer” and the biggest brand on the Romanian beer market, its story going farther, holding share in the mainstream segment. As leader of the premium segment, URSUS brand built further equity supported by the new communication story. URSUS Non-Alcohol continued for the 4th year in a row to grow volumes and share, whilst URSUS Black, with a new recipe containing three types of malt: one for the colour, one for the flavour and one for the taste, more than doubled its volume. Volumes in Cluj grew in the 4th quarter due to locally impactful activity with consumers and trade.
CIUCAS re-launch, “nature’s favorite beer”, in the second half of the year saw a profound change in visual identity, packaging, communication and the interaction with consumers and trade. The re-launch placed the brand in the mainstream segment and supported a very strong value share and important volume share growth. Strong pack mix performance was driven by national sales of the CAN. As equity builds we continue to see momentum behind the brand.
GROLSCH launch exceeded expectations in volume, value, impact and equity development. The unconventional communication plan and the experimentalist spirit of Grolsch created a new trend, very favorable for the consumers.
Our robust cost management performance was based on the company redefining its production footprint, with the closure of the Cluj brewery, the restructuring of our route to market and powerful marketing effectiveness programmes to drive return of investments.
“We have made a deliberate decision to focus on building beer market value, driving profitable growth and not chasing volume increases at any cost. Our top priorities remain in the areas of building our brands, delighting consumers with the highest quality beers, but also with new beer experiences such as the fresh URSUS unfiltered to be served in the new mini-brewery in Cluj”, said Gary Whitlie, President Ursus Breweries. “We will also continue our focus to improve efficiency and productivity and to achieve improved financial performance, all in order to secure the healthy, profitable growth of our business”, Gary Whitlie added.
24 May. 2011