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.
PepsiCo and Anheuser-Busch InBev Collaborate on Promotion, Marketing
“We’ve worked well together as official [NFL] sponsors,” said Paul Chibe, A-B InBev’s VP for U.S. marketing, to Ad Age.
An image of an in-store promotion sign displays two bags of Doritos, two bottles of Pepsi, two bottles of Bud Light, a Super Bowl logo and a caption: “Super Bowl. Super Team. Super Party.” This idea builds on PepsiCo’s summer campaign entitled “Power of One,” which promoted Mountain Dew with Doritos and Lay’s with Pepsi.
A memo sent by A-B InBev to distributors referred to the promotion as a “National Big Bet” and included a “save up to $8” mail-in rebate coupon alongside images of Bud Light, Doritos and Pepsi.
“We have always worked with cross-merchandising partners in the past, but for 2013…all three [brands -- Doritos, Pepsi and Bud Light] are trying to work together to have flawless execution at retail,” an A-B InBev distributor told Ad Age.
“The promotions between PepsiCo and Anheuser-Busch offer convenience and value to consumers during a variety of occasions. Since we are both official National Football League sponsors, we are in a unique position to kick off the year by helping our consumers celebrate Super Bowl XLVII with brand like Pepsi, Doritors, Budweiser and Bud Light,” said the companies in a joint statement.
While joint marketing can be a challenge, wrote Barclays analyst Andrew Lazar in a report, the promotion could potentially lead to huge profits.
“In our view, the packaging of soft drinks, snacks and beer around a large event makes a great deal of sense, particularly in these channels, and this may be an indication of more to come down the road,” Lazar wrote.
Bill Pecoriello, CEO of ConsumerEdge Research, looked ahead of the promotion and considered what kind of domino effect this deal could influence.
“The news will certainly fuel speculation that ultimately [A-B InBev] might acquire PepsiCo’s beverages business,” Pecoriello wrote in a report.
Pecoriello also noted, however, that an imminent deal is unlikely because A-B InBev will soon close a $20.1 billion acquisition of Mexico-based Grupo Modelo, makers of Corona Extra. Another potential hindrance: PepsiCo is still revamping its beverage business. After 2012, which the company called a “transition year,” PepsiCo will invest an additional $500 million to $600 million to advertise its brands in 2013, especially in North America
14 Jan. 2013