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.
Australia&China. Woolworths plans to heat up liquor sales with Snow
Snow is the biggest beer brand by volume in the world and holds a commanding 23 per cent market share in its home country of China, where it is brewed by a state-backed entity called China Resources Snow Breweries, in which British beer conglomerate SABMiller holds a 49 per cent stake.
China Resources Snow Breweries has struck similar distribution deals to expand the reach of Snow in Hong Kong and South Korea, with the beer now made in 90 breweries across China.
The general manager of Woolworths' Dan Murphy's superstore chain, Campbell Stott, says there had been repeated requests from the Chinese community in Australia for the business to begin stocking the beer.
"It's clear there's been an appetite for Snow in Australia," Mr Stott says.
The large number of tourists visiting China and the regular procession of Australian business travellers had also been behind the decision to strike a distribution arrangement.
"It's been the most requested product on social media for the past two years, with members of the Chinese community as well as Australians who've travelled to China asking us to add Snow to the range".
Woolworths will also begin selling Snow in its 1266 BWS liquor outlets in the next few months, after initially stocking it in the 204 Dan Murphy's outlets.
Mr Stott says imported beers as a category are growing faster than local mainstream beers at Dan Murphy's but he won't divulge a percentage growth rate. "Our international beer range, like craft beer, continues to perform well."
Pricing just above Heineken and Peroni
The retailer's pricing of Snow puts it just above popular brands Heineken and Peroni. But at $44.90 a case for Snow, it is well below the premium commanded by Australia's No.1 imported beer, Corona, which is selling for $55.99 per case in Dan Murphy's outlets.
Corona is one of the stable of global brands owned by Anheuser-Busch InBev, which is seeking approval from competition regulators in a number of countries to proceed with a $152 billion global mega-merger with SABMiller, which in Australia owns the former Foster's Carlton & United Breweries business which makes Victoria Bitter and Carlton Draught.
China Resources in December, 2015 hired several investment banks to advise on a potential buyout of all or part of SABMiller's 49 per cent stake in the Chinese brewery operations because it is likely that SABMiller would need to sell down its stake in the maker of Snow to satisfy Chinese competition regulators, as part of the global Anheuser-Busch InBev takeover.
SABMiller and China Resources began their partnership in 1994 with two breweries, and booming demand has resulted in expansion to a network of 90 breweries across China.
The Australian Competition and Consumer Commission is conducting a two-month review on the local impact of the global mega-merger and intends announcing its decision on April 14. The main focus is the licensing deal for Corona, which has a market share of 5 per cent in Australia, and is likely to shift back to Anheuser-SABMiller if the merger succeeds, after rival Lion took over the Australian rights to Corona in 2012 under change of control of clauses. Foster's was taken over by SABMiller in 2011 in a $12.3 billion deal and had held the rights to Corona in Australia for the previous 22 years.
1 Feb. 2016