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.
Foreign brewers strengthening foothold in Vietnamese beer market
The Vietnam Beer Alcohol Beverage Association (VBA) estimated that Vietnam’s beer output was 3.4 billion litres in 2015. Sabeco continued to be in the lead with 1.38 billion litres, followed by Vietnam Brewery Limited with 720 million litres, Habeco with 667.8 million litres, and Carlsberg with 229 million litres. These four brewers accounted for 88.4 per cent of the market.
Sabeco saw a 2.2 per cent growth in output last year, while the whole sector’s output grew by 8.2 per cent, from 3.14 billion to 3.4 billion litres. Meanwhile, Vietnam Brewery Limited surpassed Habeco to become the second in terms of output.
Former Sabeco chairman Phan Dang Tuat said competition had become very fierce, with brewers competing at each sales point in big and small cities alike.
A few years ago Tuat enlisted a foreign marketing expert to help Sabeco recover 800 sales points. Two years later the expert returned to Vietnam Brewery Limited. Tuat said the expert could now earn between $4,000 and $5,000 at Vietnam Brewery Limited compared to the VND40-50 million ($1,900-$2,300) at Sabeco.
“But more importantly, foreign companies are very determined and fast in expanding their market shares while domestic companies are slower,” he said.
Besides foreign brewers that have been present in the market for a long time, new players such as Sapporo, AB-InBev, and Thai brewer Singha, through its 25 per cent ownership in Masan Consumer Holdings, are expanding aggressively.
Sapporo recently bought all of Vinataba’s stake in their joint venture to make it wholly foreign owned, showing the Japanese firm’s commitment to the Vietnamese beer market. Afterwards it changed the packaging and is now expanding its distribution chain.
AB-InBev in May started production at its factory in the southern province of Binh Duong, with the annual capacity of 50 million litres. The company is going to increase its output to 100 million litres per year and is now aggressively advertising on TV at prime hours.
Meanwhile, Masan Brewery HG started production at its 100 million-litre brewery in the Mekong Delta province of Hau Giang last December.
According to VBA data, as of the end of 2015 Vietnam had 129 beer production facilities, down 12 compared to 2010, but the number of factories with the annual capacity of between 50 and 100 million litres has increased. The capacity of the whole sector is now 4.8 billion litres per year.
VBA president Nguyen Van Viet said sales grew by 4.7 per cent on-year in 2015, but the rate of growth is smaller than in previous years. The association predicted that in the next ten years sales would be around 5 billion litres. Draught beer, which now accounts for 1 per cent of the market and is sold at retail points and restaurants, is expected to grow well in the near future.
15 Jan. 2016