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.
Kirin Follows Heineken With $2.2 Billion Offer; Shares Tumble
Kirin is seeking to acquire Fraser & Neave Ltd.’s food and beverages unit as part of a proposed takeover of the Singapore- based company by a group led by Overseas Union Enterprise Ltd. (OUE) The OUE group offered S$13.1 billion for F&N yesterday, topping a bid from Thai billionaire Charoen Sirivadhanabhakdi, and said Kirin will buy the food and beverage unit.
Shares of Kirin tumbled the most in a year today on concern whether the investment will pay off. The Tokyo-based company, which generates a higher percentage of sales from overseas than any other Japanese drinks maker with revenue exceeding $1 billion, is seeking further expansion abroad as demand weakens at home and growth at its Australian unit stutters.
“Investors are now worried,” Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co. in Tokyo, said by telephone today. “They’re concerned whether it will turn out to be expensive shopping without rewards.”
Kirin, which owns a 14.8 percent stake in F&N, will tender its shares to OUE and won’t accept any competing proposal, OUE said. Kirin is “aware of the announcement,” Kan Yamamoto, a spokesman, said by telephone. He declined to comment further.
Kirin fell 2.6 percent to 965 yen as of 10:28 a.m. in Tokyo trading. The stock earlier dropped 4.7 percent, headed for the largest decline since November last year. The drinks maker’s shares have lost 33 percent in the past three years, compared with a 13 percent decline for the broader Topix index.
The company cut its 2015 sales forecast in October, citing weakening demand in Japan as a reason. Industrywide beer sales in Japan fell 3.7 percent to 442 million cases last year, the lowest level since records began in 1992.
Heineken got shareholder approval in September to buy F&N’s stake in its brewing joint venture, Asia Pacific Breweries Ltd. (APB), giving it full control over sales and distribution of its brands and F&N’s Tiger beer brand in Southeast Asia. Heineken had been spurred to increase its original offer for APB after Charoen purchased shares in F&N and APB.
Kirin had been considering a bid for the F&N food and drink unit in July, three people with knowledge of the situation said at the time, after Heineken’s initial bid for APB.
The Japanese company also has a 48 percent stake in the Philippines’ San Miguel Brewery Inc. In November last year, Kirin agreed to buy out shareholders in Brazil’s Schincariol Participacoes e Representacoes to diversify its beer sales footprint. The deal at the time valued the brewer at about $3.6 billion, excluding debt.
Leuven, Belgium-based AB InBev, the world’s biggest brewer, agreed to buy control of Mexico’s Grupo Modelo SAB for $20.2 billion this year.
F&N has been in the food and beverage business since 1883, producing soft drinks, milk drinks, ice cream and isotonic drinks under F&N Foods Pte. and Malaysia’s Fraser & Neave Holdings Bhd. (FNH), according to its website.
16 Nov. 2012