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.
General Court annuls the €31.66 million fine imposed on Grolsch
On that market the brewers sell their beer to end users mainly through two distribution channels: the “on-trade” segment (hotels, restaurants and caf?s), where consumption is on the premises, and the “off-trade” segment (supermarkets and off-licences), where the beer is purchased for consumption at home.
The infringement found by the Commission consisted of the coordination of prices and price increases for beer and the allocation of customers, both in the on-trade segment and in the off- trade segment in the Netherlands, and the occasional coordination of other commercial conditions offered to individual on-trade customers in the Netherlands.
The Commission imposed a fine of €31.66 million on Koninklijke Grolsch NV.
That company subsequently brought an action before the General Court seeking annulment of the Commission’s decision or a reduction in its fine.
Koninklijke Grolsch NV in essence denied that it participated directly in the infringement. It argued that the employees of its wholly-owned subsidiary, Grolsche Bierbrouwerij Nederland BV, attended most of the meetings at issue and that consequently the Commission should not have found that Koninklijke Grolsch NV participated in the infringement but, if appropriate, should instead have attributed liability to it for an infringement committed by its subsidiary.
First of all, the Court considers certain documents concerning the meetings between the companies and concludes that the evidence available to the Commission was not sufficient to establish the direct participation of Koninklijke Grolsch in the cartel.
The Court goes on to observe that where, as in the present case, a decision concerns a number of addressees and raises a problem of attribution of liability for the infringement identified, it must include an adequate statement of reasons with respect to each of the addressees, in particular those of them who, according to the decision, must bear the liability for that infringement. Thus, in the case of a parent company held liable for the conduct of its subsidiary, such a decision must contain a detailed statement of reasons for attributing the infringement to that company.
According to settled case-law, in the specific case of a parent company holding 100% of the capital of a subsidiary which has committed an infringement of the competition rules, there is a rebuttable presumption that that parent company actually exercises decisive influence over the conduct of its subsidiary.
In those circumstances, it is sufficient for the Commission to show that the entire capital of a subsidiary is held by the parent company in order to presume that the parent company exercises decisive influence over the subsidiary’s commercial policy. The Commission will then be able to hold the parent company jointly and severally liable for payment of the fine imposed on the subsidiary, unless the parent company, which has the burden of rebutting that presumption, adduces sufficient evidence to prove that its subsidiary acts autonomously on the market.
The Court states that, in the present case, the decision treated the parent company, Koninklijke Grolsch NV, and the Grolsch group as one and made no mention of the economic, organisational and legal links between the parent company and its subsidiary, whilst nowhere in the statement of reasons was the subsidiary’s name mentioned. The Commission therefore failed to explain the reasons which led it to determine the legal person responsible for running the undertaking at the time when the infringement was committed, so as to enable that person to answer for the infringement or, as the case may be, rebut the presumption that the parent company actually exercised decisive influence over the conduct of its subsidiary.
The Court finds that the Commission failed to explain, in the decision, its reasons for attributing to Koninklijke Grolsch NV the conduct of its subsidiary, which followed from the participation of the subsidiary’s employees in the meetings at issue. It thus denied the parent company any opportunity to reverse the presumption and thereby challenge the merits of that attribution before the Court and did not enable the Court to exercise its power of review in that regard.
Consequently, the Court decides to annul the Commission’s decision in so far as it concerns Koninklijke Grolsch NV.
20 Sep. 2011