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.
Heineken accused of ‘raw deal’ for S&N pensioners
The S&N Pensions Group (SNPG) is lobbying the Commons' business, innovation and skills select committee to investigate allegations that Heineken has failed to fulfil undertakings given on the pension scheme before the takeover of the Edinburgh brewer in 2008.
Tom Ward - former S&N corporate development and strategy director and now the spokesman for the campaign - claimed existing S&N pensioners, former employees with deferred pensions and current members of the renamed Heineken UK had "been given a raw deal and treated unfairly and dishonourably".
He added: "Before the takeover, we understood that Heineken NV, the parent company, stood firmly behind its public and private commitments on pensions.
"To now make a U-turn on its very public undertaking to follow S&N's 40 years or so of company practice in applying inflationary increases to pensions is deeply offensive."
SNPG said that, at a shareholder EGM in March 2008 to approve the joint ?7.8 billion takeover by Heineken and Carlsberg of Denmark, it was explicitly stated "there is a practice of providing discretionary pension increases each year… it is Heineken's intention to continue this practice".
SNPG said the commitment was also made to the Court of Session the following month, which passed the scheme of arrangement for the takeover to go ahead. The commitment to inflation-linked pension increases relates to S&N pensions built up in the scheme before April 1997, before which such increases were not mandatory.
SNPG said Heineken paid an inflation-linked pension increase in 2008, there was "understandably" no inflation linked rise in 2009 when inflation was virtually zero, but that the Dutch brewer paid nothing for 2010 when inflation was running at more than 4 per cent.
SNPG maintained that, although the word "discretionary" was used formally in the takeover relating to such payments, S&N's Dutch owner has acted "in bad faith" given that it was well aware the Scottish management had a "near-perfect record" of making such payments going back to the 1970s.
Ward said: "Heineken knew exactly what S&N's management meant in our discussions on pensions (before the takeover]. It was very well-established practice, if not legally guaranteed.
"We were not playing with words. We are talking, in many cases, of people who are 70 and 75 years old, perhaps on pensions of ?6,000 and ?7,000 a year, for whom a retail prices index-linked pension means a lot."
7 Jun. 2011