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.
EABL gets nod to sell stake in SABMiller’s unit
* Move will seal formal exit from TBL
* Placement set at $1.212 per share
Tanzania's stock market regulator has approved the sale of East African Breweries Ltd's 20 percent stake in SABMiller's Tanzanian unit for 121.5 billion shillings ($71.5 million), brokers said on Tuesday.
Subscriptions to the placement of 58,985,693 shares in Tanzania Breweries Limited run from Oct. 24 to Nov. 11, said Orbit Securities, sponsoring broker for the share sale.
"The Capital Markets and Securities Authority (CMSA) approved the prospectus yesterday and the share sale will start on Monday next week," Orbit Chief Executive Laurean Malauri told Reuters.
"EABL is selling its 20 percent stake in TBL for 121.5 billion shillings ... this is a placement of shares, a few shares of TBL are already listed on the Dar es Salaam Stock Exchange (DSE)."
Controlled by Britain's Diageo , EABL has set a price of 2,060 shillings per share, in what is expected to become the biggest share sale in the tiny Tanzanian bourse's history.
EABL ended a manufacturing and distribution agreement with TBL last year to buy a bigger stake in Tanzanian-based Serengeti Breweries instead and thereby boost its presence in East Africa's second-largest economy.
Serengeti, the second-biggest beer maker in Tanzania after TBL, is owned by a group of private investors.
"EABL is not raising capital or anything in the sale of the shares, it is simply exiting from TBL," said Malauri.
SABMiller and EABL have been in fierce competition for the lucrative Tanzanian beer market where sustained economic and population growth are driving the country's thirst for the alcoholic beverage.
Brokers said TBL's shares recorded a sharp price rise last week from 1,920 shillings to 2,040 shillings, as investors eye the placement of the additional shares.
"TBL's share price increase may have been driven by investors who want to take advantage of the coming mini IPO whereby the shares will be sold at a premium of up to 15 percent of the market price," Tanzania Securities Limited (TSL), a securities brokerage and investment advisory company, said in a weekly commentary sent to Reuters.
Another major player in the DSE, Tanzania's Precision Air, launched its IPO this month in a bid to raise around $17 million for fleet and route expansion.
19 Oct. 2011