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.
SABMiller seeks official review of Foster’s accounts
* SABMiller says net debt figures don't meet Australian standards
* Panel to review application to be established on Monday
* SABMiller trying everything it can to keep down price-analyst
Global brewer SABMiller , embroiled in a $10 billion battle to take over Foster's Group , has asked Australia's Takeovers Panel to examine financial statements made by Foster's that it claims are "misleading and deceptive."
SABMiller has made a A$4.90 per share hostile bid for Foster's, Australia's largest brewer, which Foster's board rejected as being too low to be "worth discussing."
Foster's released a statement from the takeover watchdog to the stock exchange on Friday, which said SABMiller had asked the panel to force Foster's to clarify information released in its financial statements.
Analysts said while it was not uncommon for a takeover predator to take issue with comments that a target company makes in relation to the bid, it was more unusual for a suitor to attack its target's accounting methods and profit statements.
"My impression is that they are trying to do everything they can to make sure they don't have to increase their offer price," said Daniel Nelson, an analyst at Constellation Capital Management.
Foster's, the maker of Victoria Bitter, Carlton Draught and Pure Blonde, reported a 9 percent slide in second-half profit on Aug. 23, a rare decline with beer margins falling for the first time in a decade and volumes declining.
In a statement, the Takeovers Panel said SABMiller claimed that Foster's had made "misleading and deceptive" statements in its profit announcement last month.
SABMiller argued there was "no reasonable basis" for several forward-looking statements made in Foster's results presentation, according to the Takeovers Panel.
SABMiller also claimed that the net debt figures published by Foster's did not meet Australian accounting standards.
George Durbridge, acting counsel on the Takeovers Panel, said the body would assemble a panel of experts on Monday to review the application by SABMiller.
If the panel decides to review the merits of SABMiller's claims, a final decision on the case could come within two weeks, he told Reuters.
A spokesman for Foster's said the brewer could make no comments on the claims by SABMiller because the matter was before the Takeovers Panel.
SABMiller, the world's second-largest brewer, took its offer directly to shareholders last month after the Foster's board rejected its initial approach. Shareholders are hoping for an offer above A$5 a share.
SABMiller, which makes Peroni, Grolsch and Miller Lite, has long been seen as the favourite to take over Foster's given the lack of potential rivals and the London-based brewer's desire to have a range of global businesses.
Shares in Foster's ended flat at A$4.86 on Friday, below the A$4.90 offer from SABMiller, but outperforming a broader market down 1.5 percent.
2 Sep. 2011