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.
Three year market performance summary of the SABMiller Ukrainian branch
One of the initial priorities of the Ukrainian branch was the implementation of the international quality standards of SABMiller at every production stage (from raw materials purchase to packing ready goods). To achieve this goal, $ 38.7 mln have been invested during these 3 years. At present, «Miller Brands Ukraine» is made of only natural ingredients, using classical recipes and observing Reinheitsgebot, the traditional German code of beer purity, approved in the XVI century.
Thanks to the unique system of water purification, water at the Ukrainian branch of SABMiller is virtually identical to Plzen water of the Czech republic, the reference standard in beer making.
The high quality of «Miller Brands Ukraine» is confirmed by the experts of the International Taste and Quality Institute, Brussels, Belgium: in 2010-2011 the beer produced at the Ukrainian branch of SABMiller received a Superior Taste Award.
The international food products safety management system ISO 22000:2005 has been in effect at «Miller Brands Ukraine» since March 2010.
The list of the brands acquired by SABMiller after having bought «Sarmat» has also changed. The company has continued developing «Sarmat» as the most promising regional brand, after discontinuing «Dnipro» and «Drive Max» brands. Besides «Sarmat», the portfolio of «Miller Brands Ukraine» includes «Zhigulevskoe» (produced at Donetsk using the classical recipe since 1962) and «Dobry Shubin» (original semi-dark beer named after the legendary kind spirit of the mines).
At the same time, the company puts special emphasis on premium class products by promoting popular licensed brands from the SABMiller global portfolio: Miller Genuine Draft, Redd's, Zolotaya Bochka, Velkopopovicky Kozel and Amsterdam Mariner.
Being a socially conscious company, «Miller Brands Ukraine» promotes responsible drinking, opposes selling beer to minors and participates in educational projects to prevent alcohol abuse.
Aside from that, «Miller Brands Ukraine» takes an active part in a sustainable development programme. Taking into account the local priorities, it's extremely important for the company in the Ukraine to protect water resources. At present, in collaboration with the World Wildlife Fund (WWF) and German society for technical cooperation (GTZ) the company is implementing a programme of efficient water resources management.
The future plans of «Miller Brands Ukraine» include sales and distribution development in the Ukraine and neighbouring markets. Development of the premium brands will remain the priority for the company, taking into account the economic attractiveness of the given segment and strong role of the SABMiller parent company in many countries.
«During three years in the Ukrainian market we have gone the long way, having integrated a regional company into the structure of one of the world brewing leaders. By becoming a part of SABMiller, we gained multiple advantages, for example, an opportunity for Ukrainian consumers to choose interesting beer brands from the impressive portfolio of the parent company», stated Igor Tikhonov, General Manager of «Miller Brands Ukraine». «These days we are strengthening the local brands, launching new licensed brands, developing the premium niche. The growth rates bring us hope, we are growing faster than the market and are hoping to retain the growth dynamics.»
7 Jul. 2011