Journals

Beer Business #2-2018. Leaders’ Plays and Regionals’ Shares

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. ...

Beer Business #1-2018. Russian beer producers (catalogue/database)

“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. ...

Beer Business (Pivnoe Delo) #4-2017

Global hop market

A 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 Russia

Germany 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.

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Vietnam. Foreign brewers are crowding out local producers

Despite the fact that in 2015 Sabeco produced 1.38 billion liters of beer, the experts say very little growth of the company. Meanwhile, Heineken was able, for the very first time, to outstrip Habeco and to take the second place in the beer market of Vietnam.

According to Mr. Phan Dang Tuat, the former chairman of Sabeco, the competition in the industry is becoming tougher, so breweries have to struggle for every outlet in both large and small cities. Sabeco plans to hire experts to back about 800 outlets.

The difficulty is the fact that in foreign companies such specialists earn $ 4000-5000, but Sabeco is able to pay 40-50 million dong ($ 1800-2300) per month. And most importantly, that the projects of foreign companies are implemented rather rapidly, whereas the local breweries need more time to do it.

The building a united team is also an important goal of Nguyen Thi Nga, CEO of the trading company Habeco. According to him, the company needs to instantly take into account changes in the market.

Apart from foreign competitors Carlsberg and Heineken, which have long been present in Vietnam, there are new companies in the market such as Sapporo (Japan), AB InBev (USA), Shingha (Thailand). The latter purchased 25% of shares of Masan and had the opportunity to build a brewery with a capacity of 100 million litres per year.

Becoming a company with 100% foreign capital, Sapporo has expanded its dealer network. In May 2015, in Vietnam AB InBev built a brewery with a capacity of 50 million litres and plans to expand it to 100 million litres. It is expected that the brewery will provide beer to Vietnamese consumers.

The competition in the global beer market is becoming very tough, and only large companies that provide good service and have a strong sales team, can win.

Vietbao

12 Jan. 2016

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