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.
Grupo Modelo Gains Share in U.S. Market as Victoria Beer Cracks Top 20
Shipments of Modelo brands rose 4.4 percent in the 13 weeks ended July 3 compared with a 1.7 percent increase for all beer imports, Emilio Fullaondo, chief financial officer, said today on a conference call. Case shipments for the U.S. beer industry fell 0.9 percent, he said, citing data from SymphonyIRI Group.
Even amid weak U.S. consumer spending, Victoria surpassed sales of 2 million cases within the first 12 months, Fullaondo said. Modelo, based in Mexico City, first sold the beer in Chicago in June 2010 at a price that tops Corona, the company’s flagship export, he said. Victoria ranks 20th among imports.
“We are very optimistic about the potential for Victoria in the U.S. market as a super-premium import and are working on plans to further expand the distribution,” he said, speaking on an analyst call after the company reported second-quarter earnings.
Modelo, aided by exports, has become the world’s seventh- biggest brewer and the largest seller of U.S. imported beers. Its Corona brand overtook Heineken as the top-selling U.S. import in 1997 and it now has six brands in the top 20, including Modelo Especial and Corona light.
Fullaondo said he hopes Victoria will help boost overall brand sales even as sales of Corona slow from previous years. Modelo started a Corona Beach Getaway marketing campaign as part of “the effort toward maintaining Corona,” he said.
‘Sources of Growth’
“That’s a virtue of having this portfolio,” Fullaondo said. “You have different sources of growth. You’re trying to target different types of consumers.”
Modelo’s brands had sales growth of 4.8 percent during the 13-week period Fullaondo said, citing data from SymphonyIRI, a Chicago-based research firm. That compares to 2.5 percent for all beer imports to the U.S. and 1.3 percent for both domestic and imported beers sold there, he said.
The market-share gains are “a combination of a good portfolio of brands and an increased marketing effort,” said Luis Miranda, an analyst with the Mexican unit of Banco Santander SA. “This trend could continue.”
Modelo is selling Victoria, a medium-bodied beer, in 10 states including California, Arizona, Texas and Colorado. The company may expand the brand into other states before the end of next year, Fullaondo said.
The beermaker said second-quarter net income fell 1.4 percent to 2.89 billion pesos ($247 million) from 2.93 billion pesos a year earlier after taxes rose 34 percent.
19 Jul. 2011