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.
Barley brewing offers basis for portfolio variation and sustainability
Launched almost a year ago, Brewers Compass is DSM’s most recent enzyme-based blend for barley brewing, when that ingredient is used in a range from 30 to 100 per cent (in terms of grist levels).
Since barley is typically half the price of malt, Van Roon (pictured) said it enabled significant cost savings, typically generated 60kg CO2 less per tonne of barley used and could also be used as a cost-effective platform for portfolio diversification.
On its launch, DSM cited increased off-trade beer consumption that – due to economic and regulatory events – was stimulating demand for quality beers (and products such as Brewers Compass) in the value and private label segments.
So did Van Roon think demand for such products was being fuelled by brewers cutting-down on malt-based beers or diversifying within a product portfolio?
He said “I don’t think it’s per se cutting down. I truly believe that malt will remain a mainstream brewing raw material. However, Brewer’s Compass provides our customers with choice and flexibility, for segmenting their portfolio, going into the area of local premium blends, or making exciting new propositions when blending.
“For instance, with nutraceuticals or fruit juices…or to reduce costs for existing products by partially replacing barley with malt,” Van Roon added.
Whether malt would continue to gain grown at the expense of malt remained to be seen, said Van Roon. “For sure there are interesting opportunities ahead. The final choice will rest with our customers, and their decision to segment their portfolio.
"However, coming back to the sustainability advantages of using barley (also the value it brings in terms of cost savings)… there are very interesting opportunities ahead for brewing with barley.”
Van Roon also spoke about the key current trends DSM had identified within global brewing.
29 Nov. 2011