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.
Japanese, US makers pour it on in Southeast Asia
UACJ, the biggest aluminum-rolling company in Japan, will spend more than 10 billion yen ($88.4 million) to expand a Thai sheet production plant by 70% in two to three years. Full-blown output began at this Rayong Province site last fall.
The company has already spent 55 billion on the plant, whose annual capacity now reaches 180,000 tons. It will install more rolling equipment and set up finishing lines in a 150,000-sq.-meter open space to bring capacity to 300,000 tons -- on a par with UACJ's biggest Japanese plant, a facility in Fukui Prefecture. UACJ was born from the 2013 merger of Furukawa-Sky and Sumitomo Light Metal Industries.
Those who can
UACJ sees the Southeast Asian and Australian markets for aluminum cans expanding 40% from current levels to a combined 26 billion cans in 2020. "We will ride a wave of growth," said Takayoshi Nakano, a senior managing executive officer.
Just as beverages in aluminum cans quickly gained popularity in Japan following their 1971 introduction amid a fast-growing economy, demand for the lightweight, corrosion-resistant containers is seen growing sharply in Southeast Asia.
"I stock up on cans of soda because my two elementary-school-aged daughters love cola and other sodas," a homemaker in Hanoi said.
Companies that make aluminum cans using sheet from UACJ are also expanding capacity. Ball, the world's leading can manufacturer, is seen opening its first Myanmar plant to produce aluminum beverage cans in the first half. Fellow American company Crown Holdings is strengthening Thai and Vietnamese facilities opened in 2013.
Japan's Showa Denko plans to lift capacity at a plant near Hanoi by about 50% to 2 billion cans a year by 2018, spending some 6 billion yen via a Vietnamese unit.
Vietnam consumes about 23 liters of carbonated beverages per person per year, according to online media giant Zing. While this comes in below the global average of 40, the market has expanded some 70% over the past five years.
Low-priced canned beer is also gaining traction. In Thailand, cans selling for the rough equivalent of about 100 yen -- about 10% cheaper than such major brands as Singha -- are increasingly popular among workers.
As retail chains modernize in Southeast Asia, beverages are increasingly available in aluminum cans rather than glass bottles and other containers. Although plastic bottle demand is also on the rise, aluminum can demand is growing sharply for beer because it must be protected from sunlight and kept from going flat.
Keeping their edge
China, which accounts for half of the world's aluminum metal output, has been ground zero for sinking materials prices. The country's economic slowdown and excessive equipment investment by its manufacturers have led to a glut in aluminum, just as it has with steel. Japanese and U.S. companies, which have a competitive edge over Chinese rivals in processing technology, are rushing to ramp up production in Southeast Asia. They are fully aware that the Chinese will likely go on the offensive in the region sooner or later, touting low prices.
Aluminum can production involves rolling and twisting sheet 0.2mm thick, and foreign objects can punch holes during this process. Companies including UACJ, having met Japanese customers' demand for quality, are skilled at eliminating impurities in the melting process. They have accumulated know-how in rolling processes and temperature management to control metal crystallization to fit specific applications and have kept the techniques in-house rather than risk disclosure by filing for patents.
25 Feb. 2016