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.
10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Ten banks lead SABMiller’s $12.5 bln loan
* Dollar funding costs high for European banks
* Further syndication possible
By Tessa Walsh and Alasdair Reilly
LONDON, Aug 25 (Reuters) - Ten banks have been formally mandated to lead global brewer SABMiller's $12.5 billion acquisition loan which backs its hostile $10 billion bid for rival Foster's , banking sources said on Thursday.
"Ten banks have signed in. The loan has been formally mandated on the agreed terms and SABMiller has sufficient funds to back the bid it's made," a senior loan banker said.
SABMiller asked 12 relationship banks to provide $1.6 billion each to back the bid which became increasingly difficult for European banks last week as dollar funding costs spiked.
Two banks -- BNP Paribas and Commerzbank -- did not join the mandated group, in a move that highlights the losses around relationship lending arising from high dollar funding costs and lower interest margins on loans, two bankers said.
BNP Paribas declined to comment and Commerzbank was not immediately available for comment.
Dollar funding costs have trebled in recent weeks and the dollar squeeze intensified last week when one bank had to tap the ECB for $500 million.
The marginal cost of dollar funding is more than 200 basis points, using Credit Default Swaps as a proxy, while the interest margin on the loan is around 90bps, bankers said.
Advisors JP Morgan, Royal Bank of Scotland and Morgan Stanley were joined by European banks BBVA, Banco Santander and Barclays; US banks Bank of America Merrill Lynch and Citigroup and Japanese lenders Bank of Tokyo-Mitsubishi UFJ and Mizuho, the two bankers said.
With a smaller bank group the mandated banks are also set to benefit from a larger share of bond fees if the acquisition goes through.
BNP Paribas' decision not to join the loan at the top level is surprising, several bankers said, as the bank topped EMEA loan league tables at the end of June 2011 with 128 deals totalling $29 billion.
BNP was also the biggest arranger of loans in 2010, when its share of 200 deals came to $50 billion, according to Thomson Reuters data.
Both BNP Paribas and Commerzbank could join the loan for a smaller amount if the loan is syndicated further, which depends on the success of SABMiller's bid.
"This is a big surprise, particularly BNP, given its global strategy to use its sizeable balance sheet. In Euro terms it's the biggest provider of credit and this shouldn't be such an issue for a key client in a benchmark financing," the senior banker said.
The loan includes an 18-month bridge loan to bond issue of around $8.5 billion and also includes three and five-year term and revolving facilities, one of the bankers said.
The loan will not fund until the acquisition closes which is not expected until mid-first quarter 2012, bankers said.
25 Aug. 2011