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.
Austalia. Supermarket giants tapping into beer market
The retail behemoths have been advised they have the potential to significantly increase sales of private labels despite falling beer consumption.
Liquor industry analysts predict the retailers - believed to reap at least $100 million a year in sales of own-brand beer - can increase their market share from 2.5 to 4 per cent.
Supermarket-owned wine labels now account for almost 20 per cent of wine sales in Australia. The supermarket giants have antagonised food and beverage companies by aggressively rolling out new home-brand labels in recent years.
Woolworths, which last year stated its wish to double private label sales across all products, has clearly been most aggressive in the beer market and this month added a new label, Sail & Anchor, to its range.
The group's liquor buying manager, Steve Donahue, told BusinessDaily Woolworths' beer sales were growing. Market research indicates industry-wide sales fell more than 5 per cent in the year to November.
Woolworths has also moved into the booming cider market using the Sail & Anchor brand.
Citi analysts believe the growth of "big box" liquor stores - Woolworth's Dan Murphy's and BWS and Coles' First Choice - will provide vital shelf space for their lower-price private label beers. They estimate private labels, sold at full price, provide a gross margin of 10-20 per cent compared with less than 5 per cent for mainstream branded beers from Foster's and Lion.
Citi's Craig Woolford said the big retailers would always promote the big brewers' brands while quietly slotting their own labels in for subtle competition.
"Foster's makes very high profit margins so the beer category has been a target for retailers, though building brand equity in beer takes time compared to wine, as consumer repertoire of wine choices is far wider," Mr Woolford said.
The retailers' private labels are divided between so-called "control brands" and their own labels. Control brands, such as the Sol Mexican brand sold in Woolworths outlets, are made by other manufacturers but licensed exclusively to one retailer.
Woolworths has also bought 25 per cent of Perth's Gage Road brewery.
Hammer 'N' Tongs was produced for Coles by Boag's, but that contract was cancelled by the Tasmanian brewer's owner Lion and the beer is now made offshore in Vietnam.
Mr Donahue said: "We won't be spending millions in advertising like the big brands do, and we are growing, but from a small base."
1 Feb. 2012