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.
Russian beer: crying in their cups
While beer has escaped authorities’ attention until now, a bill signed into law by Medvedev on Wednesday will curb beer sales between 11pm and 8am, and ban it at drinkers’ favourite points of purchase: kiosks, airports and train stations.
The new law will classify beer as alchohol for the first time and pertain to all beverages with an alchohol level above 0.5 per cent.
Though the law won’t take effect until 1 January 2013, it will mark a big change for Russia’s beer market. Currently, about a quarter of Russia’s beer sales take place at kiosks, transport hubs and petrol stations – the soon-to-be-banned points of sale.
The news is a big concern for Carlsberg, which relies on Russia as its biggest single market. Shares in the Danish brewer have fallen 8 per cent since the start of the month when it was announced that parliament was expected to pass the bill.
While the year-and-a-half delay until the law’s implementation will give brewers like Carlsberg and SAB Miller a grace period, it remains to be seen if consumers will be as happy to buy beers from shops as they were to buy them from kiosks, and how producers will make up the 10 per cent of beer sales that currently happen in the wee hours.
Kirill Bolmatov, director for the government relations of SABMiller Russia, told Reuters that he believed the ban would have a “short-lasting effect” before the market evolved to accommodate it.
“The volume sold through kiosks will be redistributed and sold in supermarkets, restaurants, bars and cafes.”
He added: “We understand how drinking beer in the streets irritates people, therefore we do not complain.”
The law marks a 12-year effort by the government to crack down on alcohol, with the strictest measures being enforced in Moscow. Since 1998, the sale of alcoholic beverages has been gradually banned at public spots, like markets and beaches, while last year, the government put a 10pm curfew on the sale of spirits.
The crackdown is not over yet with a planned bill to quadruple the fine for illegal alcohol sales.
But Muscovites can rest easy about one thing. While reports initially said that the 2013 law would pertain to Russians’ beloved kvas - a national soft drink made out of rye, yeast, beet sugar and stale bread, and containing 1.2 percent alcohol – government agencies have since assured consumers that the drink will enjoy exemption.
Good news for Coca Cola at least, which not long ago began producing its own kvas: Krushka & Bochka, which as its tagline notes, is enjoyed by tsars and peasants alike.
21 Jul. 2011