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.
The craft beer movement is already happening in China
And, that’s actually why the Tampa-based franchise is making its way to Shanghai in May.
“The numbers by volume are huge, and as the craft beer movement is exploding globally, World of Beer feels like the timing for entry into China could not be better,” adds Everts.
The franchise is already in 20 states across the country, with Shanghai being its first International location. Cong Yin, a franchisee at World of Beer Shanghai, says they have plans to open at least three more locations in the next three years.
“The craft beer movement is already happening in China - and the younger generation is demanding alternative options in beer choices. Also as a result of rising disposable incomes of the general population, premium brands are becoming much more popular and affordable,” Yin tells FOXBusiness.com.
Other big beer companies are taking notice to the growing market as well. In 2014, Anheuser-Busch InBev (BUD) acquired two Asian breweries; Jilin Ginsber Draft Beer and Jiangus Regal Beer. And according to the Euromonitor report, stout witnessed the fastest volume growth among all other beers in 2014, up by 85% -- this alongside the rising number of pubs, bars and Western restaurants in China.
Yin says Snow Brands, a joint venture between SABMiller and China Resources Enterprises, is the most prominent beer available in China and currently the best-selling beer brand in the world.
“However, craft beer is now beginning to fill the narrow gap between selections that have been available in the past,” he adds.
World of Beer says after Shanghai, its next focus will be India and the Philippines.
“There are areas that show terrific potential for the craft beer growth going on globally. South [America?] also shows a strong potential,” adds Everts.
1 Apr. 2016