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.
Myanmar Beer: new logo, new fight
Myanmar’s largest brewery has an 80 percent market share – 65pc or 70pc, if smuggled and imported brands are added into the mix – said Hiroshi Fujikawa, the company’s new CEO.
Nevertheless, he hopes to double current sales figures for all of its brands in five years, he said, at a ceremony to launch the company’s new logo in Yangon yesterday.
“To do that we will have to rely not just on the growth of the market, but on innovation and new products to attract new consumers to drink more beer.”
The beer market experienced doubled-digit growth in 2015, driven by foreign investment, he said.
The company claimed 2014 sales of K254 billion (US$198 million) of products including Myanmar Beer, Andaman Gold and Myanmar Double Strong, according to a statement earlier this year from its majority owner, Japanese drinks company Kirin Holdings.
Kirin bought a 55pc share in the company in August from Singapore-listed Fraser and Neave for US$560 million, after a drawn-out ownership dispute between F&N and minority shareholder military-linked Myanma Economic Holdings Limited (MEHL).
In the mix, Myanmar Brewery lost the rights to produce two of its most well-loved brands – ABC stout and Tiger beer in Myanmar – which were held by F&N.
In the past, Dutch beer-maker Heineken held licences to produce both brands, and has now taken these back.
This was a blow, said Mr Fujikawa. “It is always sad to say goodbye to something you have become familiar with, but it’s also important to innovate and to take on challenges,” he said, declining to discuss specific details of the contract.
“There were no licence fees. Those brands belonged to Heineken – it was their right to terminate the contract, so we had to give it up.”
He said Myanmar Brewery had not sold ABC and Tiger since August 20. However, on September 9, it launched a new product – the 8.1pc strength Black Shield.
Myanmar Brewery had hundreds of customers that drank ABC and Tiger, said Mr Fujikawa, adding that he hoped they would take up drinking Black Shield instead.
“Black Shield is a stout, and the market for stout is not yet very big, compared with the market for lager,” he said. He hopes the market will grow to a similar size.
Tetsuhiko Sato, deputy managing director of Myanmar Brewery, said customers have responded well to Black Shield. The taste is stronger than ABC because the drink is more alcoholic, he said. “Myanmar drinkers often mix lager with stout and expect a strong taste.”
The company also plans to introduce a competitor to the Tiger brand.
“I look forward to it – hopefully it will launch early next year. I think we can replace Tiger with our new product, and make a profit as well,” said Mr Fujikawa.
Managing director of APB Alliance Brewery, which launched “Made in Myanmar” Heineken beer on October 9, said its first batches of ABC and Tiger will be ready to drink by the end of the year.
“As soon as they’re ready, we’ll start distributing. There will be some small changes, but not to the taste.”
APB plans to make some adjustments to its marketing and distribution strategy, including potential promotions, he said. “We are still determining the volumes for each brand. As the brands have just been handed to us, we do not have firm numbers yet.”
Myanmar Brewery’s Mr Fujikawa said competitors Heineken and Carlsberg have a similar strategy, in terms of launching a local brand as well as a premium beer.
Kirin has a partnership with Heineken in Japan, so is familiar with its approach.
“They have deep pockets and are global leaders, so we have to look carefully at what they are doing,” he said.
“At the same time, I hope the competition will remain fair, and that we can all enjoy healthy growth.”
He hopes to remain one step ahead of rivals and maintain Myanmar Brewery’s dominance in terms of market share. “Myanmar people are proud of Myanmar Beer, and other breweries will have to base the taste of their beers on this. Local beer is the base beer – that’s common sense across the world.”
Myanmar Beer also dominates beer stations across the country – the main place for consumption, said Mr Tetsuhiko. The brewery has also introduced a new keg line, which will allow it to produce 20pc to 30pc more keg beer than before.
“Customers in beer stations love our brands – both Andaman and Myanmar beer.”
23 Dec. 2015