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.
Carlsberg clocks profit in Q3, looks at expanding capacity in India
“We are looking at expanding capacity by 500,000 hectolitres,” said Michael N, Jensen, managing director, Carlsberg India. “We have the right brands in the market and we are very focussed on our strategy.”
The expansion comes a decade after the beer maker started selling beer in India. Carlsberg India, which has been chasing growth over the past two years with brands such as Tuborg, posted its first profit in the October-December quarter last week on the back of rising demand.
Carlsberg India, in its annual earnings report, said it saw a 42% growth this year led by strong demand for its beer brand Tuborg Strong, which registered the highest growth among its products which also includes Tuborg Green, Carlsberg Elephant and Carlsberg Green.
Tuborg pipped SABMiller’s Haywards brand of beer to become the second largest beer brand in India behind United Breweries (UB) owned Kingfisher. UB has a 50% market share in market that sells 270 million case of beer a year. Tuborg now has a market share of 15%, growing by almost 50% during the year, the company added.
India’s beer market has traditionally been driven by strong beer, which accounts for 85% of all beer consumed.
Growth for Carlsberg came at a time when volumes for the first half of 2015 were down by a percent. However, in the December quarter, unusually warm winters in North and better urban demand helped boost sales.
Asian markets pulled up sales for the beer company, its global chief executive told reporters post its annual earnings last week.
We see the growth of the Asian division as an opportunity. We have a stellar growth in especially India,” Cees’t Hart told Reuters. “For us, it is important to see if this strong growth in India is sustainable, by which we are building up a very attractive business pretty quickly.”
Competitors are feeling the pressure.
“Carlsberg India has indeed grown,” said Shekhar Ramamurthy, managing director at United Breweries in an interview last week. “The brand that has grown on their side is Tuborg Strong...They are in the very heavy investment mode, but they are clearly making losses,” he added.
Jensen said the company will continue to grow at solid double digits. “While the market will grow by 5-6%, we will outgrow by at least five to six times the industry,” he added.
15 Feb. 2016