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.
Coke looks set to follow up on beer market
Chief executive Terry Davis said yesterday that he still saw a significant role for the company in brewing, despite an agreement that requires the group to stay out of the market for two years.
Mr Davis said he expected CCA would take up its right to buy Foster's mixed drinks, spirits and soft drinks businesses under a deal struck with SABMiller in June.
The deal is conditional on SABMiller winning regulatory and shareholder approval for its $10.8 billion takeover of Melbourne-based Foster's.
CCA is expected to pocket more than $300 million for selling its half-stake in Pacific Beverages to SABMiller.
Under the deal, the group would have to hand over the NSW brewery that produces and distributes in Australia the Bluetongue, Peroni and Miller brands.
Mr Davis confirmed CCA would pay about $200 million for Foster's non-beer brands, including the Cougar and Black Douglas labels and Cascade soft drinks.
The only beer asset CCA would keep is Foster's brewing operations in Fiji.
Mr Davis signalled New Zealand could be a launch market for what would ultimately be a fresh assault on the Australian beer market when the two-year period was up.
"I'm passionate (about manufacturing in) Australia rather than have it made somewhere else, so that would be my aim - to start off in distribution but ultimately to be a manufacturer."
Foreign beers that Foster's presently manufactures in Australia include Carlsberg, Corona - owned by Mexican beer giant Modelo - and Stella Artois, owned by the world's biggest brewer, Anheuser-Busch.
Both foreign giants are rivals of SABMiller but Foster's is confident it can keep the Corona contract even under the ownership of the Anglo-South African giant.
Mr Davis said CCA would be well positioned to compete in the beer market in two years.
"That's a long time to wait, but what we do know is the international brewers will be looking for alternative forms of distribution and we think we offer that," he said.
"If you're an international brewer, you have to ask yourself: why would you want your competitor to sell your brands in another country?"
25 Oct. 2011