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.
Senior Vice President of Carlsberg Group about performance in Asia 2015
In Asia, all markets grew with the exception of China where the beer market declined. Company gained share in most markets and our volumes grew organically by 2% and 8% including the acquisition impact. Non-Chinese businesses continued their growth trajectory and grew 9%.
In Indochina, Carlsberg Group delivered 3% volume growth, mainly driven by the strong growth of the Angkor brand in Cambodia and solid performance in Laos. Following a strong Q4, volumes in Vietnam were flat after the July flooding in the northern part of the country.
In China, volumes declined 2% organically while the overall market declined by an estimated 5%. The market volume decline was predominantly in the mainstream category, while the international premium category showed solid growth.
Indian business grew 42% in a slightly growing market.
Net revenue grew organically by 5%, driven by volume growth and positive price/mix of 1%. In reported terms, net revenue grew 23% due to the positive currency impact and acquisition impact. Organic operating profit in Asia grew 13%, driven by the top line growth and by tight cost control as a result of the early implementation of new operating cost management framework.
Carlsberg Group have closed five breweries in China in 2015 with an additional two closed in the beginning of 2016.
“In China, quite frequently you’re in a position where a brewery was built in the middle of a city and the government asks you to move. That’s happened in Dali, in Yunnan, that project is now just completing. The government takes into account that they’re making you incur costs and so they help you with that move” - Christopher Warmoth told.
“We’re going to go through a similar process in Yibin in East Sichuan and as the caller earlier mentioned, we’re now planning to build a new brewery in Karnataka in India. Besides that, it’s business as usual. But they would be the big projects.
China has been difficult as a market. We’re more skewed to the west where the market has been down a little bit less. And we do continue to see an opportunity for premiumisation in China, both Tuborg and 1664 have been going well. And as we move into 2016, I think we see some chance that the market should at least flatten out after a couple of years of decline”.
16 Feb. 2016