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.
SABMiller lifts LatAm beer target on economy boost
* Sees Q1 regional beer volumes up around 6 percent
* Looks at further opportunities in region (Adds detail)
By David Jones
LONDON, July 5 (Reuters) - SABMiller , the world's No. 2 brewer, raised its forecast on Tuesday for beer volume growth in its biggest region, Latin America, due to price cuts and a strengthening economic recovery.
The London-based brewer of Grolsch, Peroni and Miller Lite, which is bidding for Australian group Foster's , said regional beer volume in April-June was up around 6 percent while its key Colombian market had seen 10-percent plus volume growth in June.
"Our volume target is going up as economic recovery is now feeding through to consumption, and due to our strategy of making beer more affordable," Karl Lippert, president of SABMiller's Latin America region told an investor seminar.
The better performance and raised target contrasted with its year to March 2011, when regional beer volumes were flat and Colombia -- which accounts for more than half of regional profit -- saw volume drop 6 percent due to tax rises and heavy rains.
The brewer, which makes 31 percent of its profit from the region, said the recovery in its first quarter of April-June was very good in Colombia, Panama, Honduras and El Salvador, modest in Ecuador and soft in Peru and Argentina.
The group which makes Aguila, Club Colombia and Cusquena beers in the region, raised its 3-5 year target for volume growth to 5-8 percent a year from 4-6 percent, while cutting its revenue goal to 2-4 percent from 3.5-5.5 percent due to price cuts.
Lippert said the group was looking at expansion in Latin America away from its strongholds in Colombia and Peru after it made a brewery acquisition in Argentina last year, entered the Brazilian beer market in January, and the Bolivian beer market three weeks ago.
"There are opportunities going forward, Brazil is one opportunity on the table and you would expect us to have a look," said Lippert, adding the group had started selling its Miller Genuine Draft beer in southern Brazil this year.
Brazil is the world's third-largest beer market after China and the United States and, with a population higher than the rest of South America, is an obvious target for growth. The market is dominated by the world's largest brewer Anheuser-Busch InBev with a market share of near 70 percent.
Brazil's second-largest brewer, privately owned Schincariol, has been reported to be up for sale for around $2 billion, and SABMiller and world No 3 Heineken have been reported to be interested.
Lippert declined to comment further on Brazil and also on Foster's after SABMiller launched an A$11.2 billion ($12 billion) cash bid including debt last month for the Australian brewer, which the Foster's board immediately rejected.
SABMiller shares were 1.3 percent higher at 2,320 pence by 1320 GMT in a flat London stock market. ($1 = 0.931 Australian dollar)
6 Jul. 2011