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.
India. Heineken launch from UB stables likely to be delayed
According to alcohol beverage trade officials, UBL is understood to be gearing up to launch Heineken in India during early 2012 from the earlier scheduled launch of October 2011.
According to trade officials, this is due to the delay in the upgrade work which is going on at one of UB’s brewery in Mumbai, the sole brewery which will be used to brew Heineken beer to meet its global standards.
The decision to brew Heineken in India was taken after Heineken NV picked up a 37.5 per cent stake in India’s largest brewery company - UB, during late 2009. The management of UB had indicated that they may be able to launch Heineken during end of 2010, a date which was later deferred to mid or late 2011.
“There are lot of technical issues in brewing Heineken in India. An entire line to brew the beer is being imported and is being fine-tuned to retain its exclusive taste. Not only the line, even the barley to brew the beer in India is being imported from Europe,” senior officials at UB Group said.
However when contacted, UBL MD Kalyan Ganguly said that they are working towards a launch during October and do not see a delay. The brewery in Maharashtra is being upgraded with an investment of around Rs 30 crore.
In addition to this upgradation, UB is also putting up a greenfield brewery in Andhra Pradesh which will be built with capabilities to brew Heineken beer at a later date.
Even as UB is taking active steps to brew Heineken to India, the company has earlier introduced Heineken in selected markets of India thr-ough imports. Presently, the cost of Heineken is high (around Rs 150 for 330 ml) due to higher duties imposed on imported beer.
Domestic brewing will help to substantially reduce the price of this beer in the country, though it will be still at the premium end of the market. A 330 ml Kingfisher pint costs around Rs 60 at the premium end and Heineken, even after being brewed in India is expected to be upwards of Rs 90.
As per industry experts, this is also going to help Kingfisher in realising a revenue upside by selling this premium brand in the country.
Heineken, through the partnership with UB, is hoping to reach various metros in India to start off with riding on UB’s strong distribution network. In turn, UB is hoping that its brands will get a global stage through Heineken network in more than 60 countries.
UBL, which sold more than 105 million cases of beer in FY11, has around 50 per cent marketshare in India and has been facing tough competition from competitors like Sab Miller in its regular beer segment.
“The margins are also under pressure due to rise in commodity prices. The launch of Heineken in India will not only improve margin of UBL but also boost its efforts in premium beer segment,” an analyst said.
Meantime, the beer company, which aims to touch 200 million cases in the next three years period, is ramping up its manufacturing facility through acquisitions and setting up of greenfield breweries to meet the increasing demand for its products with an investment of around Rs 700 crore. It is planning to introduce greenfield breweries in Nanjangud of Karnataka along with one in Bihar.
It will also expand its existing capacity in Odisha, Kalyani (West Bengal), Aurangabad in Maharashtra (two units) and Hyderabad (three units) in the near future. With these planned capacities, UBL’s present capacity will go up to 16 million cases per month from 12.6 million cases in the current calender year. The company is also in talks with various state governments to cultivate barley for captive sourcing.
UBL has posted a 53 per cent rise in its net profit to Rs 40 crore in the fourth quarter of 201-11, as compared with Rs 26.1 crore in the same period last year. Net sales rose 46.5 per cent to Rs 839.5 crore during this period as compared with Rs 573.15 crore last year.
On an annual basis, the company registered a 73 per cent rise in net profit in 2010-11 to Rs 168 crore as compared with Rs 97 crore in 2009-10. Net sales rose 41 per cent to Rs 2,778.8 crore in 2010-11 against Rs 1,973.1 crore reported in 2009-10.
14 Jun. 2011