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.
“Sarmat” and “Zhygulivske” beer brands enter market in Georgia
"Miller Brands Ukraine" company starts the development of the Georgian market with the capital of Georgia. "Sarmat" and "Zhygulivske" beer brands appear on sale in Tbilisi in June. Currently, the products of "Miller Brands Ukraine" company are being sold in 70% (more than 2,000) of all trade outlets of the capital of Georgia. The brands are also represented in 9 of the largest regions of Georgia, which is 40% (1,800) of all trade outlets. In the near future, it's being planned to expand market representation of "Sarmat" and "Zhygulivske" by increasing volumes of supplies to the districts.
The products of the Donetsk brewery acquired by SABMiller plc in 2008 were represented in Georgia before. Those supplies, however, were irregular. After "Miller Brands Ukraine" concludes a distribution agreement, the products' supply will be performed on a regular basis. As of today, the volume of supplies has been increased 12 times, and the numbers are expected to grow as the company plans mass advertising of its products.
"The beer market in Georgia is now actively growing; it's on the fast track. Its potential allows us to count on a certain product niche that our brands can occupy," says Yuriy Usharov, Sales Director, "Miller Brands Ukraine." "We are positive our beer can give both local and international brands represented on the Georgian market a good run."
"'Sarmat' and ‘Zhygulivske' are well-known, even legendary, brands in Georgia. Our consumers not only enjoy the taste of genuine classic beer, but also feel nostalgic for, say, ‘Zhygulivske' brand which they remember and have loved for decades." Nukri Totradze, Business Development Director of Trade & Development, comments on the beginning of the partnership, "We put high hopes on ‘Sarmat' and ‘Zhygulivske,' and we are sure they will succeed on the Georgian market."
About SABMiller plc
SABMiller plc is one of the world's largest brewers, with brewing interests and distribution agreements across six continents. The group's wide portfolio of brands includes premium international beers such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft (draught) and Grolsch, as well as leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is also one of the world's largest bottlers of Coca-Cola products.
About Miller Brands Ukraine
PJSC Miller Brands Ukraine is a subsidiary of SABMiller plc. In July, 2008 SABMiller plc acquired 99.84% of JSC Sarmat. At the end of 2010 the company changed the name from JSC Sarmat to PJSC Miller Brands Ukraine. The brand portfolio of Miller Brands Ukraine includes local brands like Sarmat and Zhygulivske, as well as well-known international brands: Miller Genuine Draft (draught) (imported), Zolotaya Bochka (Russian premium brand, produced in Ukraine under licence), Velkopopovicky Kozel (Czech premium brand, produced in Ukraine under licence) and Amsterdam Mariner (Dutch brand, produced in Ukraine under licence).
This SABMiller subsidiary news release has been translated from its local market language to English language for publication on www.sabmiller.com. We have attempted to provide an accurate translation of the original material but due to the difficulties of translation slight differences may exist.
21 Jun. 2011