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.
India. United Breweries to set up two greenfield breweries
UB has acquired the land in Mysore and is in the process of doing so in Patna, and the breweries will be ready for operation in 2012-13, he said. The new breweries, each with an initial capacity of 0.8-1 million cases per month, will produce all of UB's brands including Heineken, their latest addition, which is now being brewed only in their brewery near Mumbai. After the expansion, the total capacity of the breweries will go up to about 16 million cases a month from 12.6 million cases a month capacity now.
UB, which holds over 50 per cent of the market share today, sees the demand for their beer growing in line with the company's double digit growth, Mr Vaz said.
UB is also in the process of amalgamation of UB Nizam Breweries and Chennai Breweries; and also UB Ajanta Breweries, Millennium Beer Industries and United Millennium Breweries. The merger of the above units is expected to be complete in the next 12 months, industry sources say.
IDFC in a recent report has said UBL continues to grow ahead of industry and hence has increased its market share to 53 per cent. However, there are challenges in the form of taxation increases by certain State Governments, change in Andhra Pradesh procurement policy, and also the relatively tougher environment will restrict volume growth to 15 per cent compared with 30 per cent in FY11.
“Our sense is that risks for UBL would increase from hereon, and any potential weakness in the business over the next few quarters could lead to a sharper de-rating,” IDFC said in its report.
12 Sep. 2011