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.
Carlsberg Looking for Acquisitions in Asia as Europe Stagnates
“We look very actively across Asia,” Chief Executive Officer Joergen Buhl Rasmussen said in an interview in Beijing yesterday. In Europe, “we are assuming a cautious environment, very little growth, probably slight decline,” he said. Beer is “not completely recession proof.”
The beermaker is aiming to boost investment in China both organically and through acquisitions, the CEO said, without disclosing possible targets. The Danish company last year increased its ownership of its Indian unit, and expanded its partnership with Chongqing Brewery Co. in western China.
Brewers are looking to emerging economies to drive sales growth as markets in western Europe and the U.S. stagnate, restrained by already-high levels of alcohol consumption, growing competition and tough economic conditions.
Anheuser-Busch InBev NV, Tsingtao Brewery Co. and China Resources Snow Brewery Co., a joint venture with SABMiller Plc, may bid for assets of China’s Kingway Brewery Holdings, the Wall Street Journal said last week, citing people familiar with the matter. Rasmussen declined to comment on the report.
China’s beer market will grow 6 percent to 7 percent annually over the next two to three years, said Rasmussen, who’s in Beijing to attend the European Union-China summit starting today. Retail beer sales in China, the world’s most populous nation, may have risen to 360 billion yuan ($57 billion) in 2011, according to researcher Euromonitor International.
China Resources Enterprise Ltd., the maker of Snow beer with SABMiller, has a 22 percent share of China’s beer market; Tsingtao Brewery, part-owned by Asahi Group Holdings Ltd., has 14 percent; and Anheuser-Busch InBev has 12 percent, according to London-based Euromonitor.
Carlsberg, the largest shareholder in Chongqing Brewery with about a 30 percent stake, sells Kronenbourg 1664 and Wusu among other beers in China.
Carlsberg reduced its annual forecast in August after bad weather and sluggish sales in Russia, along with headwinds from high prices of commodities including malting barley, weighed on profitability. It got almost half its operating profit from eastern Europe in its last fiscal year.
The volume of beer sold in eastern Europe slid 9 percent in the three months ended Sept. 30, the brewer said in November, compared with an 11 percent increase in Asia.
--Michael Wei and Clementine Fletcher, with assistance from Stephen Engle and Christine Hah in Beijing. Editors: Paul Jarvis, Stephanie Wong
14 Feb. 2012