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.
Heineken sparks beer wars with Nairobi office
The Dutch brewer supplies its Heineken beer in the Kenyan market through local distributor Maxam Ltd, which is associated with businessman Ngugi Kiuna who has held the franchise since 2007.
Heineken, which recently bought breweries in Ethiopia and Rwanda, has now established a regional office in Nairobi that will be headed Koen Morshuis, general manager East Africa — signalling its intention to get a larger share of the East African beer market. This will open a fresh round of beer wars in the region that currently pits South Africa’s SABMiller and Diageo through EABL. “After doing research we saw the results and think it’s time to put people here (Nairobi office) and we shall have a huge marketing push,” Morshuis who moved in Kenya from Vienna where he was Heineken’s marketing manager for central and eastern Europe.
“This office will look at the East African region which includes Kenya, Tanzania, Uganda, Southern Sudan, Ethiopia, Somalia, Djibouti, Madagascar, Comoros, Seychelles and Eritrea.”
He added that the Dutch brewer unlike its rivals will continue to feed the Kenyan market with beer imported from Europe, adding that the brewing giant will continue to work with Maxam in Kenya.
East African market is increasingly becoming a battle zone between SABMiller and Diageo led EABL as both firm’s proactively race to grow their regional footprint. Already, a vicious battle for market dominance is under way in Uganda between Uganda Breweries, owned 98.2 per cent by EABL, and Nile Breweries, which SABMiller owns 60 per cent. In Tanzania, Diageo through EABL ended a partnership with SABMiller over the running of Tanzania Breweries Limited and bought a majority stake in rival Serengeti Breweries last year.
This has set off a vicious market share war between the hitherto business partners as global brewers seeks a larger foothold in emerging markets where beers sales are still on the up.
Heineken’s aggressive African strategy, especially in Anglophone countries, is set to open a fresh round of beer wars in the continent. (READ: Heineken opens new round of beer wars with EABL)
It joins a long list of multinational’s including Airtel, Nestle, Coca Cola that have established their regional headquarters in Kenya.
The number three global brewer, Heineken, has been a late entrant into the African market but is racing to build its stake after clinching share deals in Nigeria, Rwanda, South Africa and Ethiopia in recent months.
Heineken bought Ethiopian Harar and Bedele for $163 million (Sh14.6 billion) mid this year and intends to use the two firms as a gateway to the newly independent South Sudan.
29 Nov. 2011