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.
AB InBev cautious over challenging times in U.S.
The brewer of Budweiser and Stella Artois said it was monitoring the U.S. economy closely, but was more positive for its second biggest market Brazil where it expects beer volumes to recover in the second half after a dip in the second quarter.
Chief Financial Officer Felipe Dutra said on Thursday that he remained cautious on the United States, saying he was watching the economy closely after quarterly beer volumes there dipped 3.4 percent due to poor weather and higher fuel prices.
Other food and drink companies have pushed through price increases to offset big hikes in commodity costs, but analysts doubt if these big rises can continue while many world economies remain sluggish, particularly the U.S. and Europe.
AB InBev shares slipped 0.5 percent to 34.97 euros by 3:45 a.m. EDT with analysts concerned about prospects for recovery in the U.S. and Brazil as around three-quarter of the group's profits comes from the American region.
"The numbers did confirm that in the two key markets which are crucial to AB InBev, the USA and Brazil, there's no momentum in terms of volumes. Expectations were relatively low and they delivered on the bottom line, but again it's confirmation that the momentum is not there in the two crucial markets," said analyst Karel Zoete at Rabobank.
Second-quarter core profits or EBITDA (earnings before interest, tax, depreciation and amortization) increased by 6 percent to $3.75 billion, in line with forecast from a Reuters poll as the group raised prices to offset flat beer volumes.
In Brazil, beer volumes fell 2.6 percent due to low growth of disposable income, and because of tough comparisons with last year which was boosted by the football World Cup.
"We are confident the slowdown is temporary," AB InBev's Dutra told reporters. "We see a significant increase in real terms for minimum wages...this has an impact on disposable income and therefore consumption as we approach the year end."
Worries over rising unemployment and stagnant wages pushed U.S. consumer sentiment to a two-year low in July, while in Brazil consumer sentiment also reached a two-year low in June due to concerns over inflation.
Miller Coors, the second-largest brewer in the United States, owned by SABMiller Plc
AB InBev stuck to its forecast that costs savings from its takeover of Anheuser-Busch in 2008 would total $2.25 billion by the end of 2011.
12 Aug. 2011