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.
BRAZIL: AmBev reports positive Q2 and H1 2011 results
First half of 2011
AmBev (Latin America North America + South America + Canada) recorded EBITDA (earnings before interest, taxes, depreciation and amortization) of $ 5.7 billion in the first six months of 2011, 10.9% higher than in the same period in 2010. Net income in H1 was $ 4 billion, a growth of 21.1% year-on-year. Normalized earnings per share until June was R $ 1.26, a figure 20.8% higher than in the first half of 2010.
Total sales volume decreased organically by 0.3% year-on-year and reached 77 million hectoliters. Volume of beer sales dropped by 0.2% while volumes of CSD (non-alcoholic and non-carbonated) fell by 0.8%. Net sales increased organically by 8.5% and totaled U.S. $ 12.4 billion in H1 2011.
Second quarter 2011
In the second quarter of 2011 AmBev’s (Latin America North America + South America + Canada) net income was R $ 1.8 billion, 20.4% higher than in the same period of 2010. Normalized EBITDA for the second quarter recorded organic growth of 9% over the same period last year, ending the period at U.S. $ 2.6 billion. Total sales volume decreased by 0.9% to 36.2 million hectoliters of beverages. Of this 26.1 million hectoliters of beer were sold.
Brazil – first half of 2011
AmBev in Brazil reached a normalized EBITDA of R $ 4.2 billion, representing an organic growth of 10.7% compared to the first six months of 2010. Up to June, net income was R $ 8.5 billion, an organic increase of 7.3%. Total volume of beverage sales in the country reached 52.5 million hectoliters in the semester, an organic decline of 1.3%.
Beer volume decreased by 1.1%, reaching 39.2 million hectoliters. Revenues from beer amounted to R $ 7.1 billion, representing an organic growth of 8.8%. EBITDA was R $ 3.6 billion, up 11.7% organic.
Brazil – second quarter of 2011
In the second quarter AmBev in Brazil reached a normalized EBITDA of $ 1.85 billion, representing an organic growth of 9.9% compared to the same period last year. Net income was R $ 3.9 billion, up 4.3%.
Total sales volume in Brazil in the second quarter of this year fell by 1.6% totaling 25 million hectoliters.
Beer sales volume was 18.4 million hectoliters, down 2.6%. Net income grew 5.3%, reaching R $ 3.2 billion. The average market share in the Brazilian beer market in the quarter was 69%.
AmBev said it keeps its plan to invest up to $ 2.5 billion in Brazil to expand its production capacity and meet demand for short and medium term.
13 Aug. 2011