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.
10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Carlsberg could raise stake in Hanoi Beer to 30%
-- State-controlled Habeco says Danish brewer to acquire 13% stake
-- Carlsberg to pay 50,015 dong per share
(Adds context in the second paragraph and comments from a Habeco official in the third and fourth paragraphs.)
HANOI--Government-controlled Hanoi Beer Alcohol & Beverage Joint Stock Corp. plans to sell a 13% stake in itself to Carlsberg A/S CABGY +1.11% , an official from the Vietnamese brewer said Friday, which would raise the Danish company's stake in Habeco to 30%.
The planned deal comes a year after Carlsberg bought a controlling stake in a small Vietnamese brewery, and European brewers are increasingly turning to Asia for growth following sluggish growth in their home markets.
Vietnam's Ministry of Industry and Trade "disclosed its decision after Deputy Prime Minister Vu Van Ninh agreed that Carlsberg will be allowed to raise its stake to a maximum of 30% in Habeco," said the official, who declined to be named because he wasn't authorized to talk to the media.
The official said the ministry has an 82% stake in Habeco, and cited Mr. Ninh as saying that Habeco will sell shares at 50,015 dong ($2.50) each to the Danish brewer. He didn't provide a timetable or specify the value of the deal.
Carlsberg wasn't immediately available for comment.
Vietnam's regulations bar foreign companies from holding more than 49% in a domestically listed company, but there are no rules governing foreign ownership in unlisted companies.
Carlsberg already holds a 17% stake in Habeco, which is the country's second-largest producer of beer after Saigon Beer Alcohol & Beverage Joint Stock Corp., or Sabeco.
The Vietnamese government's move to sell shares in Habeco to Carlsberg followed Danish Prime Minister Helle Thorning-Schmidt's visit to Hanoi Wednesday and Thursday, during which the two governments pledged to boost cooperation and trade ties.
The Vietnamese government is pushing for the Hanoi-based brewer to expand its strategic partnership with Carlsberg, the world's fourth-largest brewer, local news provider Gafin.vn reported Friday.
Carlsberg first acquired Habeco shares at VND50,015 each in March 2008, when it bought into the Vietnamese firm's initial public offering, the report said.
Last year, Carlsberg bought a 50% stake in unlisted Hue Brewery Co. to take full control of the company, which has an 8% share of the domestic beer market.
Earlier this year, Dutch brewer Heineken NV (HEIA.AE) acquired a controlling stake in Asia Pacific Breweries Ltd. (A46.SG), and is set to take full control of the brewer in November.
12 Nov. 2012