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.
Asahi closing in on 1 billion pounds StarBev deal – sources
The two were hammering out the final details of a deal which could be announced as early as next week after Asahi was left as the only bidder, but the people said that the deadline was flexible and matters could still change.
"Asahi and CVC are putting the finishing touches to a deal," said one source with knowledge of the deal on Friday.
Another source said the two were looking to agree "just bits and pieces of detail" and once these were agreed then the process can move quickly towards signing an agreement.
Earlier this month, Reuters reported that Asahi was seen as a frontrunner in the auction to buy StarBev.
CVC, which bought StarBev in December 2009, put the business up for sale after approaches from a number of brewers thought to include Asahi, Carlsberg (CARLb.CO), SABMiller (SAB.L) and Heineken (HEIN.AS).
The private equity firm had bought the business from the world's biggest brewer Anheuser-Busch InBev (ABI.BR), calling it StarBev after its Czech beer Staropramen, and although AB InBev has the "right of first offer", at least two sources with knowledge of the deal said that AB InBev is not going to buy back the assets.
The business has operations in nine eastern European nations including the Czech Republic, Romania, Bulgaria and Hungary, and although it has been hit by recent weakness in eastern European economies, it is still seen as a long-term growth story in a rapidly consolidating brewing world.
All parties involved either declined to comment or could not be immediately be reached for comment.
Big European brewers SABMiller, Heineken and Carlsberg had looked closely at the StarBev business but had concluded that anti-trust hurdles would be too difficult to overcome as all three have sizeable interests in eastern Europe.
AB InBev sold the business to cut debt after buying Anheuser Busch for $52 billion in cash in 2008 and is seen unlikely to buy back its relatively small positions in a range of markets while its eye is on the sizeable shares it has in key markets such as the U.S., Brazil, Russia and China.
The Belgium-based brewer could still earn a return if the business is sold to Asahi as when CVC bought StarBev for around $2.2 billion it agreed with AB InBev potential future payments of as much as $800 million based on CVC's return on its investment.
The brewer of Japan's top-selling beer "Super Dry" has been expanding abroad and last year Asahi president Naoki Izumiya signalled more overseas deals were likely as it aims for over 20 percent of its sales from foreign markets by 2015.
In Europe, the four big brewing stocks were all higher at 01:20 p.m. British time with AB InBev gaining 0.9 percent to 54.30 euros, SABMiller up 0.2 percent at 2,527 pence, Heineken up 0.7 percent to 41.75 euros and Carlsberg 3.3 percent higher at 460.90 crowns.
3 Apr. 2012