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.
Heineken’s takeover of S&N to be probed
The Business, Innovation and Skills Select Committee will look at evidence that there was not enough protection for thousands of S&N pensioners after the takeover by the Dutch lager maker in 2008. The evidence session is expected to take place in the autumn, and it will examine details of the takeover and in particular why Heineken did not pay any discretionary increases in pensions in 2010.
The S&N Pension Group, which was set up to challenge the company’s decision, wrote to the chairman of the BIS select committee in early June requesting a review.
The group claimed that a public undertaking had been given by Heineken during the final stages of the S&N takeover that it was the intention of the Dutch business to continue S&N’s long standing practice of providing discretionary rises on pensions in line with inflation.
But Heineken now says that it never intended to continue the practice and froze pensions where they had a discretion to do so.
Tom Ward, former corporate director of Scottish and Newcastle, said: “We are delighted that the Parliamentary Select Committee is going to hold a wide ranging inquiry. This is a good result as it will allow all the issues to be looked at in detail and with public scrutiny.”
Mr Ward, who is also a spokesman for the pressure group, said: “Before the takeover, we understood that Heineken NV, the parent company stood firmly behind their public and private commitments on pensions. To make a U-turn on this very public undertaking is deeply offensive”.
The pensioners are continuing with their campaign and have been in talks with relevant politicians and the trade union Unite. Charlie McKenna, 73, from Newcastle, was a tanker driver with S&N until he retired in 1999.
He said: “I am very pleased someone is going to look into this now.”
It has also now emerged that many hundreds of pensioners have made individual complaints to the Pension Ombudsman. The UK Take Over Panel has also been contacted to offer background help.
In a statement Heineken said: “The discretionary decision we took last year was based on the outlook for our fund at that time and we will be reviewing it again later this year. Of course we understand the strength of feeling among those who did not receive pension increases.”
The company said it was happy to continue dialogue and justify action to any relevant body who wished to review the matter.
12 Jul. 2011