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.
Will a big brewery be the price for A-B’s Modelo deal?
Antitrust newsletter The Capitol Report last week wrote the U.S. Dept. of Justice may force A-B InBev to sell off Modelo's giant Piedras Negras brewery, to appease its concerns about unfair competition in the wake of the deal.
Capitol Report cited unnamed antitrust attorneys and beer industry sources. And neither the Justice Department nor ABI have been commenting on the $20 billion merger, which is set to close in the first quarter of 2013. But antitrust concerns have dogged the deal since its announcement in June, and were a big reason why A-B handed off U.S. distribution rights for Corona and other Modelo brews to Constellation Brands.
But simply giving up rights to sell beer may not be enough to pass federal muster. A-B would still make the stuff and could, theoretically, influence its price.
Selling off the Piedras Negras brewery — which has enough capacity to fill much of Corona's U.S. demand and sits just minutes south of the border — would add yet another layer of separation between A-B's Modelo products and the U.S. market.
It's unclear who the buyer would be, but the arrangement would resemble DOJ's orders in 2008, when InBev agreed to sell off rights to its Canadian brand Labatt in the U.S. market in order to acquire A-B.
Selling off the U.S. rights to Modelo — which is the third best-selling brewer in the country with nearly 6 percent of the U.S. beer market — would obviously be a bigger thing. But given ABI's global ambitions for Corona, analysts say giving up the U.S. market may well be a deal they're willing to make.
"We do not view this as a deal-breaker," wrote Bernstein Research analyst Trevor Stirling in a note on the topic.
Meanwhile, the principals in the deal are still sounding an optimistic note. Constellation chief executive Rob Sands was upbeat Monday at a conference held by trade publication Beer Marketer's Insights, saying the process "is going entirely as expected." When asked if "major concession" - i.e. selling a brewery - would be necessary to close the deal, according to BMI, Sands said: "We don't anticipate that that will be necessary."
14 Nov. 2012