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.
Baltika Breweries announced an Extraordinary General Shareholders’ Meeting, which will take place on 01 September 2011.
The company’s issued share capital consists of 151,714,594 ordinary shares and 12,326,570 A-type preference shares. The nominal value of each ordinary and preference share is RUB 1. The company’s issued share capital totals RUB 164,041,164.
Shares will be converted at the ratio of 1:1, namely: one A-type preference share will be exchanged for one ordinary share. The impact of the conversion for shareholders will be the following:
A-type preference shareholders will receive ordinary shares and will consequently keep their ownership in Baltika Breweries unchanged.
A-type preference shareholders will receive ordinary shares and will consequently have the right to vote at the company’s shareholders’ meetings on all issues.
There will be no changes for shareholders of ordinary shares.
By merging the two share classes, Baltika optimizes a structure of the share capital that is complicated and requires definite administrative costs. The current structure is unclear to shareholders, both in terms of voting rights, and rights to dividends.
Historically preference shares have been used by companies during privatization to guarantee a certain small dividend for shareholders. As Baltika is in a strong financial position and is an adequately capitalized company, the Board of Directors believes that the preference share class is an unnecessary structure.
The merger of the two share classes into one is anticipated to have a positive impact on the trading liquidity of Baltika shares.
In recent years, the Board of Directors has recommended paying identical dividends to preference and ordinary shares. The Board will consider the implementation of a differentiated dividend for ordinary versus preference shares in accordance with the company charter if the conversion is not successfully approved by the EGM. The minimum amount of dividends on preference shares is set in the company’s charter, and cannot be below the annual Sberbank interest rate on deposits +10%, calculated for the nominal value of a share (RUB 1).
On 14 July 2011 market share price per one ordinary share amounted 1297.80 rubles and per one preference share — 1203.30 rubles*. Over the last few years, Baltika has traded registered and unregistered shares (both ordinary and preference). In Russia, the company’s shares are sold on two trading platforms: the RTS Exchange (since 2001) and the MICEX Stock Exchange (since 2003). Currently, the company’s shares are listed in the ‘Listed Securities Not Included in Quotation Lists’ section of the catalogue.
* MICEX data
19 Jul. 2011