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.
Cider Seen as Next ‘Craft’ Brew as Sales Climb 25% This Year
Cider is still a tiny fraction of the alcohol category and is not about to threaten beer, wine or spirits for booze dominance. But while mainstream beer brands are declining, cider is growing at a furious pace, drawing premium prices, coveted women drinkers and even more male fans attracted to bold flavors. Category sales were up 25% in the year ending Oct. 30, to $49.6 million, according to SymphonyIRI, which tracks grocery sales excluding those at Walmart and liquor stores.
But curiously, it's a trend the big boys seem to be missing, at least for the moment. Brewing giants MillerCoors and Anheuser-Busch InBev do not have cider brands in the U.S., although both seem to be keeping a watchful eye on the category. AB InBev, for instance, launched a cider brand in the U.K. earlier this year called Stella Artois Cidre (pronounced "see-dra") that would seem to be a logical brand extension for Stella in the U.S. SABMiller, which owns 58% of U.S.-based MillerCoors, sells only one cider, a brand called Sarita, in South Africa. Cider is "a category we're watching with interest," said a MillerCoors spokesman.
For now, the biggest stateside cider player is a privately held company operating out of tiny Middlebury, Vt., called Vermont Hard Cider Co. The marketer said it controls an estimated 60% of the cider market with several brands, including category leader Woodchuck, which has a 47% share and whose sales grew 37%, to $23.5 million in the 52 weeks ending Oct. 30, according to SymphonyIRI. The company also has the No. 4 brand, Wyder's, and imports two brands owned by Heineken International: Strongbow (No. 3) and Woodpecker (No. 15).
Just like craft beer, hard-cider brands rely on grass-roots marketing that draws consumers seeking new taste experiences, natural ingredients and authentic brand stories. And while cider used to skew to women, more men are drinking it. Vermont Hard Cider says its customer base is now 50% male, with the average drinker between the ages of 21 and 30.
"People used to feel it was just a sweet product. Now it's a lot more complex," said Vermont Hard Cider President-CEO Bret Williams. "We're doing new things and pushing the envelope, and that's bringing in the men." Woodchuck's latest offering, Farmhouse Select Series, is made from Vermont apples and premium Belgian beer yeast. And just like craft beer, it is plugged as a perfect food pairing with cheeses and pork dishes.
The biggest U.S. brewer in the category is craft-beer pioneer Boston Beer Co., maker of Sam Adams, which sells a cider brand called Hardcore, whose sales jumped 21% in the year ending Oct. 30, and a new offering named Angry Orchard. Meantime, European cider giant C&C Group is upping its U.S. game, and recently bought the No. 2-ranked Hornsby's brand from E. & J. Gallo Winery. C&C plans to use Hornsby's strong West Coast distribution to grow its Irish import Magners, whose base is on the East Coast, said spokesman Robert Ballantyne.
Hard cider's U.S. heritage goes as far back as John Adams, who was said to down a tankard every morning to prevent gas. But in the modern era, cider has never broken through in the mass market. While growing fast, it still accounts for only 0.2% of the combined beer and cider market in the U.S., compared with 17% in the U.K. and 12% in Ireland, Nomura Equity Research stated in a recent report.
So why would global brewers even consider moving into such a small category? For one, cider has good margins. It is priced at an average of $35 a case, more than other premium offerings, such as $33 for craft beer and $29 for imported beer, according to Nomura. Also, cider attracts women drinkers. "Whereas 80% of beer companies' consumers are male, cider is gender-neutral, opening up a market in which beer players have struggled," Nomura said.
29 Nov. 2011