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.
Asian tycoons near final battle in war for Singapore’s F&N
Thai billionaire Charoen Sirivadhanabhakdi appears to have the advantage going into a formal auction that begins on Monday to decide the fate of the 130-year-old company, which sold its prized Tiger Beer brand to Heineken NV for S$5.6 billion ($4.56 billion) last year.
The Thai gambit values F&N at nearly $11.3 billion and puts the pressure on a consortium led by Riady's Singapore-listed property firm Overseas Union Enterprise Ltd to counter the offer or withdraw from Southeast Asia's largest-ever corporate acquisition.
"This has extended Charoen's advantage. He has an upper hand over OUE because he's only about 10 percent away from gaining majority control of F&N," said Goh Han Peng, an analyst at DMG & Partners Securities in Singapore.
Monday's auction was triggered because neither bidder had declared a final offer by a deadline on Sunday set by Singapore's Securities Industry Council.
Thailand's TCC Assets Ltd, headed by Charoen, raised its offer last week to S$9.55 a share, above the S$9.08 bid by the Overseas Union-led consortium. F&N shares rose 1.4 percent to S$9.71 in early trade on Monday.
Charoen acquired an additional 90.8 million shares, or a 6.3 percent stake in F&N, at S$9.55 each on Friday and another 2.2 million shares on Saturday.
The move raised his total stake - held through TCC Assets Ltd and Thai Beverage PLC - to 40.6 percent including acceptances. Charoen's previous offer was S$8.88 per share.
The offers by Charoen and the Overseas Union group are conditional on getting more than 50 percent of F&N. If Charoen wins, F&N will have to pay a break fee of up to S$50 million to the Overseas Union group.
DRINKS AND PROPERTY
F&N has a property portfolio worth more than S$8 billion and soft drinks, dairy and publishing businesses. It sold Tiger Beer to Dutch brewing giant Heineken in September.
F&N's independent financial advisor JP Morgan has said its sum-of-the-parts valuation is S$8.58 to S$11.56 per share.
In the auction, each side can revise its offer by a minimum of one Singapore cent per share once a day. The revision must be unconditional and in cash.
The process will continue until neither side revises its offer or the securities watchdog stops the auction.
Forbes says Charoen is worth $6.2 billion. His rival, Riady, is also president of the Lippo group founded by his father Mochtar Riady.
Charoen has extended the deadline of his previous offer seven times and the Overseas Union group twice. The multiple extensions have tested the patience of F&N shareholders.
Kirin Holdings Co Ltd <2503.T>, F&N's second-biggest shareholder with a stake of around 14.8 percent, has given its conditional support to the Overseas Union group.
The Japanese brewer will offer to buy F&N's food and beverage business for S$2.7 billion if the Overseas Union group's bid is successful. JP Morgan's valuation of that unit is S$1.88 billion to S$3.82 billion.
If Charoen wins control of F&N, analysts say he is likely to use F&N's distribution network in Singapore and Malaysia to sell his other products and to market F&N brands in Thailand, where he already has an edge.
21 Jan. 2013