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.
Vietnam. Local beer players face foreign firms
The local beer market is set to face tough competition due to a rising number of foreign brewers moving into the market after Viet Nam joins the Trans-Pacific Partnership (TPP), experts said.
Under the TPP agreement, Viet Nam's imported beer tax from member countries will be reduced from 35 per cent to 0 per cent. As a result, imported beer will flood Viet Nam.
Both international and local players are expected to step up marketing activities, new product developments as well as expanding distribution networks.
Sabeco is the biggest Vietnamese beer maker, with a 46-per-cent market share. The Hanoi Beer Alcohol and Beverage Joint Stock Corporation (Habeco) accounts for 17.3 per cent of the market. And Vietnam Brewery Limited (VBL), a joint venture business between Saigon Trading Group (Satra) and Asia Pacific Breweries Ltd. (APBL) which is now Heineken Asia Pacific Pte Ltd, accounts for an 18.2 per cent market share, according to Euromonitor's market report.
Sabeco holds 100 per cent of the charter capital in three member businesses and long-term investments in 19 associated companies. It reported total sales of nearly VND29.8 trillion (US$1.4 billion) and a pre-tax profit of VND3.672 trillion ($171.6 million) in 2014.
According to Euromonitor, in 2014, Sabeco reached the highest market share with a revenue of VND30 trillion ($1.3 billion) but had profit of VND4 trillion ($177 million) only. Profit of both Sabeco and Habeco reached VND5.4 trillion ($240 million) but is still lagging behind that of VBL with VND6.2 trillion ($275 million).
An industry insider said despite the high revenue of Sabeco and Habeco their products are still focused on the medium market segment thus leading to low profit while foreign players have used good marketing and a reasonable price strategy to bring higher profit.
According to Mikio Masawaki, the new general director of Sapporo company, the difficulty in building its brand name and advertising products was solved after its Japanese-backed beer maker Sapporo entered deeper into Viet Nam by taking control of a local brewery venture with hopes of increasing its share in this lucrative market.
Sapporo International has concluded a contract to buy 29 per cent of Vietnam National Tobacco Corp (Vinataba) in its Vietnamese beer venture. After the transaction, Sapporo Vietnam became a wholly-owned subsidiary of the Japanese beer maker.
Currently there are 4,000 retailers selling Sapporo products, mostly in central HCM City. The figure is expected to climb to 7,000 in February next year.
In May this year, Belgium-based brewer Anheuser-Busch InBev opened its first brewery in Viet Nam. The plant, covering 100,000 square meters in the southern province of Binh Duong, will produce 50 million liters of beer a year. It said capacity will be doubled in the future. The plant will initially produce the company's global brands, including Budweiser and Beck's. The facility will help serve more than 90 million consumers in Viet Nam, according to Anheuser-Busch InBev.
17 Dec. 2015