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.
SABMiller plc: Bond Issue
SABMiller plc (the "Company") announces that its wholly-owned South African subsidiary SABSA Holdings Limited (formerly SABSA Holdings Proprietary Limited) ("SABSA") has issued a programme memorandum (the "Programme Memorandum") relating to the establishment by SABSA of a ZAR 6,000,000,000 Domestic Medium Term Note Programme guaranteed by the Company (the "Programme").
The Programme Memorandum was approved by the Johannesburg stock exchange, JSE Limited ("the JSE"), and registered on the Interest Rate Market of the JSE on 13 December 2012. The Company expects that notes issued under the Programme ("Notes") will be listed on the Interest Rate Market of the JSE, although under the terms of the Programme Memorandum unlisted Notes or Notes listed on another financial exchange may also be issued. No Notes are being issued or offered at this time. The net proceeds of any issue of Notes will be applied by SABSA for general corporate purposes, or as may be otherwise described in the applicable pricing supplement relating to such Notes.
The Programme Memorandum is available for viewing on the JSE's website www.jse.co.zaand will also shortly be available at www.sabmiller.com. The Programme Memorandum supersedes and replaces in its entirety the programme memorandum published by SABSA and SABFIN Proprietary Limited ("SABFIN") on 7 July 2007 (as amended) in respect of SABSA's and SABFIN's ZAR 4,000,000,000 domestic medium term note programme (the programme limit under which was increased to ZAR 6,000,000,000 on 24 December 2008), except in relation to notes issued prior to the date of the Programme Memorandum. SABSA has appointed Absa Corporate and Investment Bank (a division of Absa Bank Limited) as its debt sponsor in relation to the Programme in accordance with the JSE's debt listing requirements.
This announcement may not be distributed, directly or indirectly, in or into the United States, Canada, Australia or Japan. It does not constitute an offer to sell or the solicitation of an offer to buy securities referred to herein or an invitation or inducement to purchase such securities.
Notes have not been and will not be, registered under the US Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States (as such term is defined in Regulation S under the Act) unless they are registered under the Act or pursuant to an exemption from registration. No public offer of Notes is being or will be made in the United States.
This announcement does not constitute or form part of any offer or any solicitation to purchase, nor shall it, or the fact of its distribution, form the basis of, or be relied on, in any purchase. This announcement and any subsequent offer of securities may be restricted by law in certain jurisdictions and persons receiving this announcement or any subsequent offer should inform themselves about and observe any such restriction. Failure to comply with such restrictions may violate securities laws of any such jurisdiction.
20 Dec. 2012