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.
10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
India. Naming Mallya wilful defaulter fraught with challenges, RBI role crucial
"For a bank to stamp a defaulter wilful, it has to be shown that loan was not repaid despite the promoters having money in their bank. And since money is usually transferred out of the accounts of the defaulting company, the onus is on the banker to prove that funds were siphoned off," says an official of a Kolkata-headquartered bank which had stopped short of pronouncing Kingfishger as a wilful defaulter.
On Tuesday, Punjab National Bank (PNB) became the third public sector lender to declare the Kingfisher and its two guarantors - United Breweries and Mallya - as wilful defaulters. Earlier, United Bank of India and State Bank of India had done the same.
United Bank of India had briefly hogged the limelight in 2014 when it named Kingfisher promoter Vijay Mallya and its directors as wilful defaulters, and even published a list of people of such infamy, triggering a country-wide debate on ways to tackle bulging NPA levels in the banking system.
But the Calcutta High Court played spoilsport, nulling United Bank's decision mainly on technical grounds like failure of the bank to follow the norms laid down by Reserve Bank of India to identify a borrower as wilful defaulter.
According to the master circular of the Reserve Bank of India, a bank is required to set up a two-tier mechanism to identify a wilful defaulter. First tier is the Identification Committee, who will identify a wilful defaulter on the basis of cogent evidence. Its finding is then required to be considered by the second tier, the Grievance Redressal Committee, after affording the defaulting borrower a reasonable opportunity of hearing by the committee.
United Bank was then forced to strike off names of Kingfisher, its directors, and also several other defaulters like Bipin Bohra of SPS Group. After the jolt, the bank has now turned its attention to United Breweries (Holdings), whose name has appeared on its revised defaulters' list as a guarantor to Kingfisher.
The role of RBI has also been brought into question by the bank. Apart from commenting that "natural justice ought to have been read in the relevant clause of the master circular", the court last July asked RBI to present itself in the case of UB Holdings vs United Bank of India since the master circular would require interpretation, and that the court was "likely to take a serious view of the matter" if RBI fails.
Following this, RBI filed an affidavit-in-opposition and has now begun expressing its views on the case.
The Calcutta High Court would conclude hearing RBI on Wednesday, which would play a crucial role in banking sector's effort to nail Mallya, who has so far enjoyed upper hand in the legal process.
If United Bank's effort falters this time too, it is quite likely that PNB's declaration will meet the same fate.
17 Feb. 2016