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. Carlsberg launches super premium strong beer
Unlike other global markets, as much as 80% of the 17 million-hectolitre (1 hectolitre = 100 litre) beer market in India is strong beer. This refers to beer with alcohol content higher than 5%.
But brewers have restricted launches in the premium to super premium segment to mild beer brands (those with alcohol content lower than 5%). Take SAB Miller's Foster's, Anheuser-Busch Inbev's Budweiser, United Breweries' Kingfisher Ultra and Carlsberg's eponymous brand. United Breweries is also slated to add Heineken to this segment this year.
Carlsberg, a late entrant in India, has aggressively expanded brewing capacity and launched a brand a year since 2009. Carlsberg Elephant is the India subsidiary's second introduction in the strong beer segment in year.
It's Tuborg Strong brand, positioned for younger consumers, has emerged its biggest brand by volume. It exceeded sales of 1 million cases in seven months of launch, the company said.
"There were no premium alternatives to trade up to in strong beer. Encouraged by Tuborg Strong's sales we expect consumers to trade up further," Carlsberg India MD Soren Lauridsen said. Carlsberg Elephant is priced at a 40% premium over Tuborg Strong at Rs 100-120 for a 650 ml bottle.
The Elephant name is inspired by elephant statues that man the entrance to its Copenhagen brewery.
The company said it may have to take a more educational path to build this brand in India. "We need consumers to try out the brand first as Indians have not been used to paying high for strong beer," Loridsen said.
The India beer market has grown over 10%, one of the fastest in the world which has enlisted strong competition from international players. United Breweries dominates the industry with more than half the market share followed by SAB Miller.
Carlsberg, which claimed which claims 6.2% market share (excluding Tamil Nadu) as of April, acquired control over 90% of its India operations after it bought out partner Lion Brewery Ceylon earlier this month. The Sri Lankan partner had said it was exiting the company because India investment requirement was high at $200 million over the next few years.
29 Jun. 2011