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.
US. Small brewers back bill to change state distribution rules
Brewers say the current law is archaic and is disadvantageous to small brewers who run the risk of signing on with a distribution company that may not operate with the brewers’ best interests in mind.
Since the repeal of Prohibition, alcohol has been distributed in the U.S. through a three-tier system: Brewers sell their product to distribution companies, who in turn market the product to retailers.
The system includes protections to keep large brewers from arbitrarily breaking contracts with mom-and-pop distributors.
In the last few decades, however, the proliferation of small breweries in Massachusetts and across the country has turned the tables, brewers say. Now, breweries say they have no real options to change wholesalers, although wholesalers argue that brewers’ complaints are overblown.
Rob Martin, president of the Massachusetts Brewers Guild and Ipswich Ale, said in a meeting with Daily News editors and reporters this week that brewers roll the dice when they enter an agreement with a distributor.
He said once a brewer makes an agreement with a distribution company, the wholesaler essentially owns the brand in its designated territory and it is extremely difficult to break that bond, even if a distributor is doing nothing to market the brand.
“There is some very, very limited recourse and that is not enough,” Martin said. “This is really a marriage.”
Unless a distributor is defaming a product, he said, it can be nearly impossible to break off the relationship.
Martin said a side project of his was derailed by a distributor in Massachusetts.
Martin said he had started brewing Stone Cat Ale and released it to one of the same distributors he uses for Ipswich Ale. The distributor didn’t do much with the product but refused to release it back to him, forcing him to discontinue that brew, resulting in people losing their jobs.
Meanwhile, he said, distributors can trade brands with little input from brewers.
The legislation, now in the House, aims to give brewers an out when they feel a distributor is not holding up its end of the bargain.
A bill now in the Committee on Consumer Affairs, would allow brewers to buy out their brands from a distributor — based on an agreed-upon fair market value — and take their business elsewhere.
If the two sides could not reach an agreement within 90 days, an outside arbitrator would be brought in.
The measure would only be available for brewers that produce fewer than six million barrels of beer a year or represent less than 20 percent of a distributor’s total business.
There are no brewers in Massachusetts that exceed the six-million barrel limit, said Martin. The only brewers that do are large companies including Anheuser-Busch and MillerCoors, he said.
The chief sponsor of the bill is Rep. Alice Peisch, D-Wellesley.
“I think it’s a question of fairness and allowing the small brewers to have a level playing field,” she said yesterday. “The mechanism for changing distributors is overburdensome, expensive and difficult.”
On the other side of the coin, distributors say the complaints from brewers are invalid.
“We think (the legislation) is a solution chasing a problem,” said John Stasiowski, president of the Beer Distributors of Massachusetts.
Stasiowski said there are remedies in place for brewers unhappy with their distributors and he believes the bill is discriminatory toward large brewers.
Stasiowski also pointed to the success of up-and-coming breweries across the state, seemingly represented by devoted distributors.
“There isn’t a problem there, at least in Massachusetts,” he said.
Jack Hendler, who founded Jack’s Abby Brewing in Framingham, said that in the world of small craft brewing, choosing a bad distributor can be the kiss of death.
“You’re married to this without the potential for divorce,” he said.
Jack’s Abbey, which is going to be doing its first bottling run shortly, just contracted with a small, new distributing outfit that Hendler is confident will do all it can to sell the brand.
23 Feb. 2012