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.
UK: Marston’s bottled ale volumes up, but profits flat in FY
Net sales up by 6.8% to GBP113.7m
Ale volumes up 2% year-on-year
Bottled ale volumes up 18%
Marston's Beer Company has reported flat full-year profits, but an increased focus on off-trade premium bottled ales boosted volumes.
Operating profits in the 12 months to the end of September crept up by 0.6% to GBP16.4m (US$26.3m), the Wolverhampton-based brewer and pub operator said today (29 November). Sales in the period rose by 6.8% to GBP113.7m.
Overall ale volumes were up by 2% on the prior year, with bottled ale volumes rising by 18%. Premium cask ale volumes saw a 3% lift. The company said it has maintained its “market-leading position” in these two categories, increasing market share in each by around 1%.
Marston's said its strategy of having “genuinely local ales” in the UK on-trade, and a focus on premium bottled ales in the off-trade, has seen it benefit from “increasing consumer demand for regional beers” - in particular, cask ale in pubs and “high quality premium brands in the off-trade”.
Overall UK beer sales have spiralled downwards in recent years, with brewers pointing to the Government's beer duty escalator, introduced in 2008, as a major factor. Latest British Beer & Pub Association figures released last month revealed that UK beer volumes fell 5.6% year-on-year in the three months to the end of September.
Marston's full-year group profits before tax rose by 9.2% to GBP87.8m, while sales increased by 5.5% to GBP719.7m.
CEO Ralph Findlay said: “These results demonstrate resilience despite the weak economy and very poor weather during the summer. All areas of the business achieved increased revenue and profit in the year, demonstrating the continuing appeal of good pubs and beers.”
Looking ahead, Findaly said: “The economy is likely to remain weak for the foreseeable future, but we have a clear, proven strategy, which is appropriate for current market conditions, and which is achieving growth.”
The group also announced chairman David Thompson intends to step down after 35 years with the company. He will remain in the role until a successor is found.
30 Nov. 2012