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 Value Falls to Lowest Since SABMiller Offer
Foster’s traded as low as A$5.08 today, 18 Australian cents higher than SABMiller’s A$4.90 cash offer, before closing at A$5.09 today, up by 0.2 percent. The stock had traded as high as A$5.23 since the deal was rejected by Australia’s biggest brewer on June 21 as too low.
The Australian beermaker hasn’t been in contact with the London-based brewer of Peroni and Grolsch since last month, when it turned down the offer and SABMiller said it would “seek engagement.” The Melbourne-based company is instead focusing on cutting costs and boosting spending on brand promotion to stem market share losses in Australia for its top- selling beer Victoria Bitter.
“The market is starting to realize that it appears no one else is going to come in with a counterbid, and that SABMiller is in no hurry to re-engage,” said Trevor Stirling, an analyst at Sanford C. Bernstein in London.
SABMiller shares have rebounded from as low as 2,074.5 pence on June 23, climbing to their highest price ever on July 8 as concern eased about the rationale of acquiring Foster’s.
Foster’s has gained 12 percent since June 20, the day before the offer was rejected. SABMiller fell 0.7 percent to 2,323 pence yesterday. SABMiller rose 0.2 percent to 2,328.5 pence as of 9:05 a.m. in London trading.
SABMiller could afford to pay more for Foster’s, according to analysts surveyed by Bloomberg News, even though an acquisition would dilute the London-based brewer’s exposure to faster-growing emerging markets. Any purchase would give SABMiller access to about half the Australian beer market, including the eponymous Foster’s brand, as well as a business with some of the highest margins around the world.
Andrew Butcher, a spokesman for Foster’s external media adviser Butcher & Co., declined to comment, affirming there has been no change in the company’s stance on the bid.
Foster’s spun off its Treasury Wine Estates Ltd. unit in May, spurring speculation that both parts of the business would attract bids. Grupo Modelo SAB de CV, the Mexican brewer of Corona, and Molson Coors Brewing Co. had explored a possible joint bid for Foster’s, five people with knowledge of the matter said June 3. Japan’s Asahi Breweries Ltd. may also be interested in the company, two people close to the situation have said. No brewer apart from SABMiller has made a public offer for Foster’s.
“SABMiller is the only bid out there and may be the only one made,” said Theo Maas, who holds Foster’s shares and helps manage about $5.4 billion at Arnhem Investment Management in Sydney. “I wouldn’t be overly happy as a SABMiller shareholder if they go higher than this. Going hostile at A$4.90 probably won’t get them anything, so it’s a bit of a stalemate.”
The gap between Foster’s shares and SABMiller’s offer was 33 cents on June 27. At today’s low, the spread was 45 percent narrower at 18 cents.
14 Jul. 2011