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.
China contributing to growth of SABMiller revenue
The world’s second-biggest brewer by sales after Anheuser-Busch InBev SA said net producer revenue—which accounts for excise and other taxes—fell 8% for the quarter, a sharper decline than the 5% the company logged a year earlier as SABMiller’s key operating currencies slid against the dollar.
At constant currencies, revenue rose 7% in the three months ended Dec. 31, compared with a 4% rise for the same period a year earlier.
A host of companies that have exposure to emerging markets and report results in U.S. dollars have been hurt lately, as many currencies have tumbled against the dollar. In the last few months of 2015, the South African rand, the Colombian peso, the Tanzanian shilling and the Angolan kwanza all depreciated by more than 20%, while the Polishzloty and the Kenyan shilling have depreciated by more than 10%, noted Berenberg analysts.
SABMiller is currently in the process of being acquired by AB InBev, with the deal expected to close in the second half of this year. The companies have moved to sell parts of SABMiller’s business in the U.S. and Europe to appease regulators, but haven’t yet said what they will do with SABMiller’s 49% stake in a joint venture in China that makes Snow, the world’s largest beer brand by volume.
SABMiller reported a 5% jump in net producer revenue at constant currency for the Asia Pacific region, with China contributing growth of 6% despite lower beverage volumes in the country.
For the quarter, SABMiller logged a 12% increase in Africa, with South Africa growing by 16% as volumes were helped by warm weather. The company recently said it would likely pull out of South Sudan because it can’t access enough foreign exchange to buy raw materials. On Thursday it said it is “evaluating our options.”
Net producer revenue rose 8% in Latin America, buoyed by growth in Colombia and Peru. However volumes of SABMiller’s nonalcoholic malt beverage, Pony Malta, declined following what SABMiller described as “an unfounded rumor that went viral on social media in October.” Media reports last year described a story allegedly circulated in Latin America on popular messenger service WhatsApp about a plant operator’s body being discovered in a Pony Malta storage tank.
In Europe, revenue climbed 6% helped by Romania, the U.K., Poland, the Czech Republic and Slovakia. SABMiller last month confirmed that AB InBev is exploring the sale of its premium brands Peroni and Grolsch and their associated businesses in Italy, the Netherlands and the U.K.
Sales in North America, where SABMiller operates through its MillerCoors joint venture with Molson Coors Brewing Co. fell 1%, a similar decline to a year earlier. Large brewers have struggled to grow sales in the U.S. as consumers have shunned big name lagers for craft beer and spirits.
Soft drinks volumes grew 8%, with double digit growth in Africa and what the company described as a “subdued performance” in Latin America.
21 Jan. 2016