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.
India. SBI Seeks Vijay Mallya’s Arrest, Seizure Of Passport
State Bank of India, which heads the consortium of 17 lenders to the grounded Kingfisher Airlines, moved the Debt Recovery Tribunal in Bengaluru against the airline's chairman Mallya in its bid to recover over Rs. 7,000-crore dud loans from him.
According to sources, SBI has moved four applications at the DRT in Bangalore, seeking impounding Mallya's passport, getting him arrested, securing the lenders' first right on the payout from Diageo and getting full disclosure of his assets in the country and abroad.
The immediate objective of the lenders moving the DRT is to secure a first right on the $75 million severance package that Mallya will be getting for quitting Diageo-owned United Spirits (USL) as its chairman last week.
An SBI official confirmed to Press Trust of India that they have moved the DRT seeking right on $75 million severance package, as the borrower Mallya who has already been declared by the bank a wilful defaulter, has decided to leave the country and settle down in London.
Mallya and Kingfisher Airlines owed Rs. 7,800 crore to a consortium of 17 lenders led by State Bank which had an exposure of over Rs. 1,600 crore to the now defunct airline.
Since January 2012, the loan was not serviced. Other lenders include Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India, Central Bank of India, Federal Bank, Uco Bank and Dena Bank among others. Last year, SBI declared Mallya as wilful defaulter. Last month, Punjab National Bank had also declared him, his group holding company United Breweries Holdings and the long-defunct Kingfisher Airlines as wilful defaulters.
As part of a deal, Diageo said it would pay $40 million immediately to Mallya with the balance being payable in equal installments over the next five years. It will also absolve Mallya of all liabilities over alleged financial lapses at the company founded by his family.
Last year Diageo auditors had found that Mallya had diverted Rs. 7,200 crore of United Spirits Limited (USL) funds to the airline, which was again diverted elsewhere.
The England-based Diageo is the majority shareholder of USL with a 54.78 per cent holding, excluding the 2.38 per cent owned by the USL Benefit Trust.
Mallya personally held a small stake of 0.01 per cent in USL at the end of December 2015, while his group firms owned further 3.99 per cent stake. However, more than half of these shares are pledged with banks.
The 17-member lenders consortium led by SBI has also decided to auction Kingfisher House in Mumbai on March 17 this year in a bid to recover a part of Rs. 6,963 crore debt due from Kingfisher, as lenders since January 2012 has recovered around Rs. 1,200 crore by selling pledged shares of group companies and other physical assets.
Banks are charging 15.5 per cent compounded interest on this principal amount, which has not been serviced since January, 2012.
3 Mar. 2016