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.
Foster’s Rejects SABMiller Bid
Foster's Group rejected a nearly $10 billion takeover offer from global brewing giant SABMiller
Foster's beer business has long been considered a potential takeover target amid global consolidation in the brewing industry. SABMiller's bid follows the recent demerger of Foster's wine business, which had struggled in recent years.
"SABMiller can conclude a transaction quickly and will continue to seek engagement with the board of Foster's to put an agreed proposal to Foster's shareholders," SABMiller Chief Executive Graham Mackay said in a statement.
Foster's said early Tuesday that SABMiller made an unsolicited, incomplete, nonbinding and conditional offer to acquire all Foster's shares for A$4.90 a share, an 8.2% premium to Monday's closing share price.
"The board of Foster's believes that the proposal significantly undervalues the company in the context of a change of control and, as such, it doesn't intend to take any further action in relation to it," Foster's said.
Sales of beer in Australia have come under pressure in recent years as specialist boutique and low-carbohydrate beers have grown in popularity.
Foster's last month carved out its underperforming wine assets into a separate listed company, Treasury Wine Estates. The wine assets have been plagued by writedowns, with an oversupply of grapes and wines from Australia in the global marketplace. The financial crisis and a strong Australian dollar have also made it difficult for Foster's to grow sales of its premium wines in key markets like the U.S.
SABMiller's joint venture partner in Australia, Coca-Cola Amatil, said earlier Tuesday the pair were amending the terms of their JV to allow SABMiller to buy shares in Foster's. The initial arrangement surrounding the Pacific Beverages JV limited SABMiller's ability to buy shares in Foster's in its own right.
The Australian beverages market has been consolidating in recent years. Kirin Holdings Co. acquired Foster's rival Lion Nathan Ltd. for about A$3.3 billion in 2009. Japanese beverage maker Suntory Holdings Ltd. bought nonalcoholic-drinks maker Frucor in 2008, while Asahi Breweries Ltd. paid US$744 million in 2009 for the Australian unit of Schweppes from Cadbury PLC, based on exchange rates at that time.
Foster's shares were up 12.8% at A$5.11 late Tuesday morning in Sydney.
Foster's is being advised by Goldman Sachs, Gresham and Allens Arthur Robinson.
21 Jun. 2011