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. Mallya may give UBL control to Heineken to settle with banks
Mallya's counsel made an offer before the Supreme Court to pay Rs 4,000 crore to settle with a consortium of banks fighting to recover unpaid loans. The proposal rests heavily on his ability to divest shares in UBL, in which Heineken owns nearly 44% while Mallya's holding is slightly above 32%.
"This offer will be met from two sources — shares in UBL and a residual stake in United Spirits. Mallya will have to offer shares to Heineken as the latter has pre-emptive rights on them," said a source close to Mallya on condition of anonymity. The Supreme Court, depending on the response from the banks, will have to lift a lower court freeze on Mallya and his Indian investment company UB Holdings selling assets, the source added.
An emailed query to Heineken remained unanswered. The Amsterdam-based company had earlier told TOI that it was watching developments involving Mallya. A spokesperson for Mallya said, "We have no comments to your queries."
UBL has a current market value of almost Rs 22,000 crore, rendering Mallya's stake worth Rs 6,700 crore, or a little over $1 billion. Mallya, who recently resigned as chairman of United Spirits, will look to offload his remaining 4% stake in the distiller. However, Diageo Plc, which acquired USL from him, already has controlling shares and has no right of first refusal on these shares. Mallya's shares, though pledged, are worth about Rs 1,500 crore.
In context, Mallya would part-sell his UBL stake as part of the loan settlement and try to remain its chairman. The latest settlement offer along with Rs 1,200 crore (from an earlier sale of assets) in an escrow account would cover the Rs 5,000-crore principal loan amount payable to the banks, sources added.
In 2009, Heineken entered into an equal joint venture with Mallya to jointly run UBL but hiked its holding through market purchases of Mallya's shares sold by the banks in the past two years. These transactions freed Heineken from the 'equal shareholding and joint management' clause, TOI reported in July last year. This had set the stage for Heineken to claim management control, but the foreign partner was in no tearing hurry given its cordial ties with Mallya.
31 Mar. 2016