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.
UK. Marston’s: managed pub sales boost
The company said its performance has been “encouraging” and “robust” despite the difficult trading environment. Profitability is in line with expectations.
At Marston’s Inns and Taverns, its managed house division, like-for-like food sales grew 5% over the 42 week period with like-for-like wet sales up 1.7%.
In the last 10 weeks, like-for-likes were up 2% against a strong trading period last year, which included the World Cup and good weather. Operating margin has improved compared to last year, it said.
In Marston’s Pub Company, its tenanted and leased pubs division, underlying profit trends have continued to improve. Like-for-like profits are estimated to be 0.5% ahead of last year.
It attributes this rise to the continued rollout of its franchise Retail Agreement, where licensees earn a percentage of takings and pay no rent. The agreement is now operating in around 300 pubs.
The deal sees licensees typically earn 20% of turnover to pay themselves and staff, with Marston’s buying everything else and paying the bills.
Marston’s also said that those pubs expected to stay on traditional agreements for the long-term are trading ahead of last year.
Its own brewed beer volumes are up around 2% on last year at Marston’s Beer Company with premium cask ale up 4%.
Net debt and cash flow is in line with expectations and it has completed 10 new build pub-restaurants to date. Performance of new builds continues to be ahead of its original targets.
“We are encouraged by the resilience of our business in the year to date,” said chief executive Ralph Findlay. “Our focus on offering value for money with high service standards in a quality pub environment is generating strong consumer appeal and maximising returns on our investment programmes.”
28 Jul. 2011